Finding the right car for you is an important decision and a significant investment. You probably want to protect it somehow, but after buying your dream car, or just something to get you around the block, you probably have better things to spend money on besides replacement of the car and medical bills in the event of an accident. Auto insurance can do that, and is a requirement nearly everywhere if you own or operate a vehicle on the road. For businesses, commercial auto insurance is just as important, whether you have one vehicle or one hundred in your fleet.
In the United States, auto insurance is required to have a minimum amount of liability coverage to pay for damages caused in an accident. If you are deemed liable, your auto insurance will pay for both property damage and medical expenses to spare you the brunt of the costs. Each state has its own minimum liability auto insurance requirements, and limits can either be combined total coverage or split coverage for property damage and bodily injury. Auto insurance can be upgraded to a full coverage policy, which is divided into collision and comprehensive insurance. Collision auto insurance covers damage caused in a collision with another object regardless of fault and comprehensive auto insurance covers damage caused by anything other than a collision (such as fire, theft, weather, or other “Acts of God”).
Commercial auto insurance has many of the same options as personal auto insurance but is tailored for a business setting. Many businesses will own multiple vehicles and have multiple drivers, and this all is taken into account for a commercial auto insurance policy. For large vehicle fleets, commercial auto insurance can be written as fleet insurance, so individual policies do not have to be written for individual vehicles. Commercial auto insurance also looks at the driving records of individual drivers, so business owners need to look closely at the driving history of their employees.
Other types of auto insurance policies cover unique situations. Uninsured and underinsured motorist auto insurance protects you when the party at fault has no insurance or insufficient insurance to cover the damages. Lack of insurance is becoming increasingly prevalent, making this type of auto insurance more appealing. Loss of use auto insurance covers the cost of a rental car when your primary vehicle is being repaired due to covered damage.
Auto insurance has many facets and can be very complicated when shopping around for a policy. Auto insurance is offered by nearly every major insurance agency and many smaller ones as well. Finding the best auto insurance policy for you can take a lot of time and money.