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What You Need to Know About Commercial Auto Insurance

Like personal auto insurance, commercial auto policies are often comprised of many types of coverage. However, there are a few differences between personal and business vehicle insurance about which you need to know. While pieces such as collision and uninsured motorist coverages are common to both kinds, commercial auto insurance includes specific kinds of liability coverage that help your business.

Hired Auto Liability

Your New Mexico insurance agency may recommend hired auto liability as part of your commercial auto coverage. Usually, it grants your business, your employees and yourself additional protection if you must rent or hire vehicles for business purposes. This typically applies to rental cars, temporary leases or other situations where you’re hiring a vehicle for a short period of time.

Non-Owned Auto Coverage

If you or anyone in your company uses their own vehicles for business reasons, you’ll need to include non-owned auto as a component of your policy. This addition gives you liability for injury and damages incurred during an accident while using a personal vehicle for corporate business.

Your New Mexico insurance agency will probably suggest adding these two kinds of coverages to your commercial auto policy. These will complete your policy along with standards such as collision, property damage, uninsured motorist, medical payments and non-collision components. Having a comprehensive strategy such as this to help shield you from losses is essential to protect your business.