What does "all-risk" coverage mean in the context of commercial auto insurance?

The term “all risks” refers to the fact that commercial auto insurance offers broad coverage. Of course, the coverage under this policy is less comprehensive than the name suggests. The insurance does not provide coverage for driving under the influence or for damage caused intentionally. However, compared to third-party liability plus limited comprehensive coverage and third-party liability-only commercial auto insurance, the coverage is very broad.

What coverage does all-risk commercial auto insurance provide?

The standard coverage in all types of insurance is liability insurance. In the event of damage caused by the insured motor vehicle, the insurer will compensate the other party. In addition to liability-related damage, the third-party liability plus limited comprehensive coverage also pays out for damage caused by, for example, fire, theft, and broken windows. This coverage is also offered by all-risk commercial auto insurance. The added value is coverage for damage to your own vehicle. This can be caused by a collision, but the insurer also provides coverage for damage resulting from vandalism.

When should you choose all-risk commercial auto insurance?

This type of insurance is especially recommended if your company car still has a high current market value or is even brand-new. You don’t even want to think about the consequences of an accident with more limited coverage. Suppose you insure your new car with third-party liability coverage. In an accident, your company car is severely damaged. You are personally responsible for the damage, so you cannot hold the other party liable for your losses. The repair costs amount to €5,000. Because you chose third-party liability insurance, you’re on your own to cover this damage. It could be even worse: the repair costs might exceed the car’s value. As a result, the new car would be worth almost nothing. You can prevent this by choosing comprehensive coverage.

Who pays for the damage?

Whoever causes the damage is responsible for paying for it. With all-risk auto insurance, you don’t have to worry about this. Your insurer will make sure your company car is repaired. If necessary, the insurer will seek reimbursement from the other party, but you don’t have to wait for that. You can have your vehicle repaired right away.

Save Money by Comparing Prices

You might choose a more limited type of insurance to save on your premium. But there’s a smarter way. You can actually save money without compromising on the quality of your coverage. The differences in premiums between insurers are so significant that you might be able to get comprehensive auto insurance from the cheapest insurer at a lower premium than you’d pay for third-party liability plus limited collision coverage from another insurer.

Other types of coverage:

• WA
• Liability + Limited Comprehensive Coverage
• All Risks