Automobile Insurance

Premiums are based upon the number of vehicles, the type of vehicles and size , the range typically driven and to a lesser degree, the age of the vehicle. 

The typical coverages in a business auto policy are :  Liability, Physical Damage to the insured vehicle, Medical Payments, Uninsured and Underinsured damage coverage.  Most agents sell everything.  Frankly, they don’t understand the nuance of auto coverage.  This type of business insurance, in particular, is one where choices can be made to limit coverage smartly and save money.  

Most of us own a car so auto insurance is the most well known of coverages that may apply to a business.  There are a few differences between your personal auto policy and business auto policy.  One key difference is “who is the insured”.  Your personal auto policy insures the owner of the vehicle(s).  Naturally, this is the individual or couple who might have their name on the ownership of the vehicle(s).  If you drive another vehicle that is not owned by you, that vehicle’s insurance is typically the primary insurance, however, your personal auto coverage may apply as well. 

Business auto is different.  While personal auto typically follows the driver, business auto coverage follow the business.  An individual does not have coverage under the business policy while driving a vehicle that is not insured by that business.  Coverage can be amended to do so by specific driver.  This is common but an additional premium is charged per driver.  This is called the  “ Employees as Insureds” endorsement.  It is common for business owners or salespeople who may not own a vehicle in their name and not have a personal auto policy.