Top-rated Commercial Auto Insurance To Purchase In California
Just as a general car insurance serves the purpose of protecting your car from every unexpected circumstance, a commercial auto insurance does the same for the cars that you use for work. Thus, to define the course of a commercial car insurance it can be stated that, it is a type of coverage that pays for the vehicles that you use for working purposes. It needs to be noted that a general car insurance does not cover the cars that you use for you work. And this is what makes considering a commercial car insurance so crucial.
In California there are almost 1.6 million businesses settled. There are businesses that are strongly associated with cars, such as vans and trucks. According to the law of California, the businesses owning cars must have a commercial vehicle insurance, the size and expenditure of your business does not matter in this regard. There are certain factors that you need to keep in mind before proceeding with the purchase. And to help you with that we have prepared this article with the incorporation of accurate information regarding the coverage needs, costs as well as the best companies to provide with commercial auto insurance in the state of California.
Motor vehicle accidents in California
California is certainly holding the place of one of the most important states in the US. The state has a large number of businesses settled in it along with quite a large number of accidents to take place as well. According to the official data, in 2017 there were 197,000 motor vehicle accidents that took place in CA and resulted in injuries. Among these accidents there were 6,693, which involved trucks. And 2,967 of those had the truck driver at fault.
Again in 2017, there were 3,582 accidents that took place and resulted in fatalities. Among these accidents 311 involved trucks and 84 of those had the truck driver at fault.
It is also reported that there is at least one major accident involving vehicles in every 3.25 minutes. Speeding has been reported as the major reason behind these accidents. Therefore, if you are the resident of the state California and you own vehicles for business purposes then it is mandatory for you to purchase a commercial vehicle insurance without delaying anymore.
Types of commercial auto insurance
As it has been stated before, purchasing a commercial car insurance is mandatory regardless the size of your business. And the size and type of the car also do not impact the course of the insurance. If you own a car for your business purposes, then you have to have it insured. However, the type of car is one of the major factors to impact the coverage options. According to the Californian law, there is a minimum liability coverage that is needed for the commercial vehicles. The liability coverages are presented below:
| Amount | Coverage type |
| $15,000 | For bodily injury, each person |
| $30,000 | For bodily injury, each accident of that involve two or more injured individuals |
| $5,000 | For covering property damage, each accident |
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The above table represents the minimum liability for the commercial vehicles; however, these rates do not apply if you own large vehicles, such the trucks, buses, semi-trucks and more. These types of large vehicles usually have a higher liability requirement as well as a higher rate as well. There are certain factors that determine the insurance requirements. These factors are presented below:
- The weight and size of the vehicle
- The sort of material that will be carried by the vehicle. If the vehicle is a subject to carry hazardous materials, then it will be having higher liability requirements.
- The purpose of the vehicle use, such as deliveries, commerce, construction and more.
- Passenger capacity of the vehicle if it will be used for transporting passengers.
Approximate cost for vehicle collisions
According the to the National Safety Council, the cost for commercial vehicle collision liability can be extremely high. The council has revealed the approximate amounts that are payable in the course of an accident. The amounts are presented below:
| Cost | Type of liability |
| $1,420,000 | If the accident causes any fatalities |
| $70,500 | If the accident results in non-incapacitating injuries |
| $22,700 | If the accident results in incapacitating injuries |
| $9,100 | If there is any property damage due to the accident |
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According to a report, in the state of California an approximate amount of $4.16 billion is collected each year for the liability cost. Approx $40 million of the mentioned cost is associated with medical costs and $4.12 billion is associated with work loss costs.
Factors that are covered by commercial auto insurance in California
There are a varied number of coverage options available for commercial auto insurance in California. Among all of the coverage options only the liability coverage is the mandatory one. Rest of the coverages are subject of your choice. However, it is recommended to buy as much coverages as your business can afford, since the risks associated with the commercial vehicles are higher than the passenger cars.
Liability coverage
This coverage option pays for the needed liabilities when one of your drivers ends up becoming responsible for an accident with the company vehicle. It covers the cost for the third-party property damage, injuries and also the fees of the legal defense (if you have added that in your coverage limit).
Collision coverage
This coverage option pays the costs that are associated with the repair and replacement works when you damage your company vehicle in an accident. However, the vehicle must have a collision-related damage.
Comprehensive coverage
This coverage option compensates you for the repair and replacement costs when your company vehicle faces a non-collision related damage. These type of damage pays for theft, vandalism, flood, fire etc.
Medical payments coverage
This coverage is capable of paying of the medical treatment costs when your driver and your authorized passengers suffer any injury due to collision in your company vehicle. This coverage option will cover the medical payment regardless of the fault.
Uninsured/Underinsured motorist insurance
This coverage covers the costs for personal injury and property damage when the party that is at fault, does not own an accurate or any insurance policy to compensate your company vehicle.
For-hired (or non-owned vehicle) coverage
This extra coverage is provided to your employees when they use their personal vehicles for the company’s need.
Loading and unloading coverage
This covers for the products, equipment, materials and other things that were loaded in your company vehicle during the time of the event.
Bobtail coverage
This type of coverage is associated with paying for the tractors that you operate without having a trailer in tow. You can have this coverage any time your company vehicle is in use.
Towing and labor coverage
This is roadside assistance coverage, which can help you out when your vehicle becomes inoperable in the road. Having this coverage can be extremely helpful during the time of crises.
Factors that are not covered by commercial auto insurance in California
Just as the standard inclusions there are some of the standard exclusions in the course of commercial car insurance as well. The exclusions are mentioned below:
- Intentional damages are not covered
- Damages that exceed the coverage limits
- Vehicles that are not the property of the company but used for business purposes, will not be covered.
5 best commercial auto insurance in California
In this section of the article, there will be a discussion based on the top-rated commercial vehicle insurance available in CA. It is to help the aspirate buyers for determining the best company for themselves.
1. Progressive
Progressive has topped our list for being the best overall choice for purchasing a commercial car insurance from. The company has been providing service for auto insurance for more than 80 years. It certainly has been one of the most preferred choices of the customers for its uninterrupted quality services. Along with auto insurance, the company offers you the facility of added coverages for your business needs.
There are two type of insurance options that are offered by progressive for commercial auto coverage. The types of coverages are mentioned below:
- Commercial auto and truck insurance
- Tow, dump and food truck insurance
Progressive also has coverage options for specialized vehicles. These insurance plans are referred as landscaper and contractor.
If you have other policies with Progressive, then you can bundle that up with your commercial auto insurance policy and gain the benefit of attractive discount. The company can be one of the best choices for the delivery drivers as well as for the people who offer rideshare service. The affordable rates, attractive discounts and top-tier service of the company is something you should not miss if you are opting for a quality commercial vehicle insurance service.
2. Travelers
Traveler is one of the most flexible insurance providers that helps you in choosing your most suitable commercial vehicle insurance policy. You can also add your preferred coverage add-ons to ensure extra protection, that too under a very affordable price. The policies of Travelers provide:
- Up to $1 million limit with liability coverage
- Best protection in the industry for accident loss and damage with physical damage coverage
- The collision coverage ensures an enhanced protection if your company vehicle collides against another vehicle of an object
- The comprehensive coverage option of Travelers includes animal or bird collision protection, which you probably cannot find in the offers of other insurance providers.
Options of 13 different coverage add-ons are available in the coverage offers of Travelers. You can select the add-ons via Select Auto CoveragePlus® Endorsement. These additional coverage options include:
- Blanket additional insured coverage, with the help of this coverage you can easily eliminate the requirement of listing each person or company in contract with you. This is an additional insured entity that is provided only by Travelers.
- Auto lease gap coverage, this coverage pays for the gap that persists between the outstanding loan amount and the actual cash value of the vehicle. You will not have to pay for the gap from yourself.
The company has been in the insurance industry for 165 years. The reputation and the customer satisfaction that the company holds, provides an idea about its satisfactory service. The innovative approaches associated with its coverage options can prove to be some of the most suitable approaches for you and your company.
3. Allstate
Allstate is considered to be the third largest insurance company in the US. It is also one of the most preferred commercial auto insurance providers in the state of California. The company is financially stable and has a high rating on the area of customer service and customer satisfaction by Better Business Bureau.
However, there are certain limitations that can impact the customers’ experience negatively. The biggest disadvantage to be associated with the venture of Allstate is that it does not offer a varied range of coverages, not as much as provided by the other insurance companies. Nevertheless, you can balance that out with the facility of customizing your coverage options by yourself. Moreover, their streamlined claim process is enough for influencing a never-before customer satisfaction.
4. Auto-Owners
Auto-Owners is the best choice for small businesses as the company offers coverages at a very reasonable price as well as with a number of attractive discounts. The Road Trouble Service is one of the most beneficial services that you can gain by considering the assistance of Auto-Owners, which allows you to gain any kind of assistance for your commercial vehicle while you are on the road.
The discounts offered by the company are presented below:
- Paid-in-full discount
- Multi-policy discount
- Life multi-policy discount
- Group discount
- Fleet monitoring discount
- Farm use seasonal discount
- Deductible-related cost reduction
- Favourable loss history
You can be eligible for any of the mentioned discount based on your stature. And if you qualify for any of the mentioned discounts then Auto-Owners can prove to be the best choice for you.
5. Commercialinsurance.net
Commercialinsurance.net is not an insurance company rather it is a network consisting of thousand of independent insurance agents. You can easily choose any agent based on your requirement. The experienced agents can surely do an efficient job in providing you with the most suitable commercial car insurance in California. You will also be able to compare the quotes provided by different companies for same coverage options.
Commercial auto insurance is certainly a very crucial factor for the business owners. Thus, it is better to skim through all of the important factors before proceeding with purchasing. You also should compare the prices and policies before settling down in order to ensure your company vehicle is being protected to its full potential.
Resource list: -
For knowing more about the commercial car insurance in California, you can visit the below provided links.
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