7 Things You Should Know About Commercial Vehicle Insurance

Commerical vehicle insurance

January 4, 2023

There are many misconceptions about insuring a vehicle commercially. Many new business owners mistakenly think that their business insurance covers their vehicle or that they don’t need commercial auto insurance until they operate a fleet of cars. Both of these ideas are false, and if you’re operating without commercial auto insurance, you’re putting yourself, your employees, and your business at great risk. 

Another trend that has grown in the past several years is the number of individuals using their vehicles for contract-type work, such as food delivery services or product delivery services. In rare cases, the company you work for may offer a type of insurance for your vehicle, but in most cases, it’s your responsibility to ensure you have the right coverage to protect you in the event of an accident and against liability issues. Whether you’re working full-time or part-time, if you’re vehicle is used for business reasons, you need to protect yourself with commercial insurance. We’re going to cover seven important things you should know about commercial vehicle insurance, but you may want to book an appointment with an insurance broker to help you determine which coverage is ideal for your circumstance. 

Why Do I Need Commercial Vehicle Insurance?

Commercial vehicle insurance is necessary for any vehicles used for business purposes. This includes small businesses, organizations with company vehicles, and large companies with fleets. Commercial auto insurance not only protects your business, but it protects your employees, customers, and even the general public, in case an accident does occur. Not only does this type of insurance cover the people involved, but it adds professionalism to your business. People are more likely to work with your company when they know you have the proper insurance coverage.

1. Do I Need Commercial Vehicle Insurance for all Work Cars or Trucks?

Any vehicle used for business purposes needs to be commercially insured. Any time a vehicle is being driven for your company’s purposes, you are responsible for that vehicle and any incidents that may occur. Without the proper coverage, your business risks having to pay for any damages incurred. A licensed insurance broker can help you save money while finding you the best insurance coverage for your needs. 

2. How Many Cars Do You Need for Fleet Insurance?

While the term ‘fleet’ may bring to mind hundreds of sailing ships, for our purposes, a fleet is actually much smaller. A commercial ‘fleet’ consists of just five or more vehicles, and they don’t have to be the same. Any combination of cars, trucks, deliveries, vans, etc., counts as a fleet. Insurance rates will depend on the number of vehicles covered.

3. Do I Need to Own My Fleet Vehicles to Qualify for Insurance?

A common misconception is that you can only insure a vehicle that you own, or at least that your company owns, but it isn’t actually necessary for you or your business to own the vehicles you wish to insure. Any vehicle used for your business, whether leased, owned by you, or owned by an employee, can be covered under your fleet insurance. What matters is that the vehicle in question is being used for commercial purposes. 

4. Does My Business Insurance Cover My Vehicles?

Business insurance is not the same as vehicle insurance and so will not cover your vehicle specifically. Business insurance will cover you for liability and ensure your physical building and products and employees, but not your vehicle. You need separate insurance for each vehicle driven by your company.

5. What Is Covered by Commercial Vehicle Insurance?

Most people think of legal fees, accident benefits, and comprehensive coverage when looking at vehicle insurance. So what will fleet insurance cover? Commercial vehicle insurance ensures the health and well-being of your employees and clients, as well as that of the public and the community in which you operate. The business vehicle itself is also covered, as is your company. Your company will be protected from lawsuits and liability of damages (property damage or injury) as well as being protected from costly interruptions to the business that otherwise occur while sorting out the aftermath of any accident that may occur. 

6. What Will Affect My Insurance Rate?

As with other vehicle insurance, a clean driving record will help you get a better rate. If your current policy is claims-free, that will also get you a better rate, as will keeping your policy claims-free. While bundling different types of insurance can save you money, adding more vehicles to your fleet often also results in further discounts. Cornerstone Insurance brokers can offer you a more precise quote based on the number of vehicles you have, the scope of your business, and your driving records.

7. How Do I Find the Right Commercial Vehicle Insurance Policy?

There are hundreds of insurance providers in the Edmonton area; finding the right provider may take some research. Calling around and comparing rates is one tried and true method of finding the best coverage. Have a list of questions ready, so you are comparing the same information from each provider. Alternatively, you can save a lot of time listening to on-hold music and talking directly to an insurance broker. An insurance broker is trained specifically to find the right coverage to meet your needs at the best price. They deal with multiple insurance companies on a daily basis and can negotiate the best deal for you. Not to mention, dealing with insurance companies every day helps a broker to know what the current rates and trends are.

Commercial Vehicle Insurance in Edmonton

You may be a one-man crew driving for a food delivery company, or you may own a large-scale delivery service with a fleet of vehicles; if your business involves driving, you need to make sure you have the proper coverage. Right now, especially as we have a long winter ahead of us, the right coverage is paramount. Alberta has the second-highest rate of car accidents in Canada, and road conditions are at their worst during the winter months. Whether you need to insure a single vehicle or an entire fleet, Cornerstone can find the right commercial vehicle insurance for you. Our goal is to get you the best coverage for the lowest rates, keeping you and those involved in your business protected against all contingencies. 

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