2090 Gause Blvd. W., Slidell, La 70460


Boesch Insurance

Commercial Auto Insurance Coverage

Small business owners may be tempted to rely on their personal auto policy rather than buying commercial auto insurance for vehicles used primarily for business purposes. However, personal auto insurance excludes coverage for business-related activities. If you are using a vehicle for your business, it is important to get a commercial auto insurance policy to protect it.

Personal vs. Commercial Auto Insurance

A commercial auto insurance policy provides coverage for business-related driving activities, which is important because personal auto insurance won't necessarily cover any business-related auto accidents. Commercial auto insurance also offers higher liability levels than personal auto insurance.

If an employee regularly drives the car, the commercial auto insurance policy allows you to add that driver's name to the policy and extend coverage. If an employee goes out on company business in their personal vehicle and then gets into an accident, coverage can be added to protect your business from that liability as well.

How Rates are Determined

Commercial auto insurance rates are based on several factors, including:

  • The likelihood of you filing a claim, along with the estimated cost of the claim.
  • Driving records of all covered employees. In general, clean driving records translate into lower premiums.
  • Location. If your business is located in the center of the city where traffic is heavier, you'll pay more than if it's in a remote suburb.
  • Usage frequency. If you use the car daily to make sales and/or deliveries, your commercial auto insurance rate will be higher than if the vehicle is occasionally used.

How to Keep Rates Low

There are several ways to lower the cost of your commercial auto insurance policy:

  • Maintain a clean driving record and remain free of claims.
  • Increase your deductible. Higher deductibles translate into cheaper premiums.
  • Drive safe vehicles. Insurers offer discounts for vehicles equipped with anti-lock brakes, air bags, alarms and global positioning systems.
  • Shop online and compare quotes from competing providers. It could save you a fortune.