What does commercial auto liability insurance cover?

What does commercial auto liability insurance cover?

If damage is caused by your company car, the injured party has a direct right to file a claim against your insurer. It doesn’t matter whether you were the driver or someone else. This legally required insurance is in place to protect other road users. The insurance will pay out if the driver of your company car is liable for the damage. Was the company car itself also damaged? This damage cannot be recovered through your own liability insurance.

Should you choose third-party liability insurance for your company vehicle or another type of coverage?

If your own company car is damaged, third-party liability insurance for company cars won’t help you. After all, you can’t be held liable for damage caused to your own vehicle. For cost reasons, third-party liability insurance for company cars may still be the right choice. If you also want to insure against theft, broken windows, and hail damage, for example, you’ll want to consider third-party liability plus limited comprehensive coverage. Do you want the most comprehensive coverage? All-risk commercial auto insurance also covers damage to your own vehicle. When comparing options, you can compare the premiums for the different types of coverage side by side.

Be sure to consider the drawbacks of commercial auto liability insurance

Insuring only against liability offers you significant savings on your premium, but be sure to consider the downside. For example, theft or a collision that’s your fault could leave you without a company car.

How much more does third-party liability + limited comprehensive coverage cost?

You choose third-party liability (WA) commercial auto insurance because you want low monthly payments, but how much more does a more comprehensive policy cost? Often, for a slightly higher premium, you can opt for third-party liability plus limited comprehensive coverage. The difference between third-party liability and comprehensive commercial auto insurance is often quite significant. Still, you might want to consider the more comprehensive coverage if you have many claim-free years. The discount can be as high as 75% or even more, which significantly reduces your premium.

Other types of coverage:

• WA
• Liability + Limited Comprehensive Coverage
• All Risks