Commercial Auto vs. Commercial Fleet Insurance

Vehicle insurance, sometimes known as auto insurance, is one of the most widely used types of insurance. It requires the insurer to take on the risk of any losses that the owner or driver of a car may suffer from harm to people or property as a result of an accident.

At James Campbell Insurance, we believe in helping our clients manage risks while using their vehicles for personal or commercial operations. For this reason, we provide commercial fleet insurance, among other services, to clients across Ontario.

Although there are many distinct types of auto insurance, this article will focus on commercial auto and fleet insurance.

What is commercial auto insurance?

A commercial auto insurance policy provides physical damage and liability coverage for uses, conditions, and amounts not protected by personal auto insurance. This business insurance covers many commercial vehicles, from automobiles used for business purposes (including company cars) to various commercial trucks and vehicles.

It also covers legal bills, medical expenses, and property damage if a business vehicle is involved in an accident.

What is commercial fleet insurance?

Insurance companies consider fleet insurance the best auto insurance plan for covering two or more business vehicles under a single policy. Fleet insurance saves business owners time, money, and hassle by eliminating the need to purchase plans for individual vehicles in their fleets.

This policy coverage is typically any policy with five or more vehicles registered in a company name. Still, some insurers may require six, seven, or more units to qualify for a fleet rating.

What does commercial auto insurance cover?

Generally, commercial auto insurance policies cover liability damages, collision or comprehensive physical damage, and loss to your company’s vehicles. This insurance also covers the loss of a vehicle due to weather, theft, and non-collision incidents, including medical costs for injuries to occupants of your company’s vehicles and damage incurred by occupants of your company’s vehicles due to the negligence of an uninsured motorist.

The most common types of coverage in a commercial auto insurance policy include:

1. Accident collision coverage: This pays for accident-related damage to your insured business vehicle.
2. Comprehensive coverage: Theft, bad weather, vandalism, or fire are examples of non-collision scenarios for which this coverage compensates for damage to your insured business vehicle.
3. Rental reimbursement: After an accident damages your insured business vehicle, rental reimbursement pays for a rental car up to a set level.
4. Liability coverage: If you are at fault, liability coverage covers other people’s injuries, property damage, and legal costs if you are sued.
5. Uninsured motorist coverage: This coverage will cover any injuries or property losses that passengers suffer in your insured business vehicle if an uninsured driver causes an accident.
6. Personal injury protection: Notwithstanding who caused the accident, this coverage pays medical costs and lost wages for accident-related injuries sustained by passengers of your insured business car.
7. Medical payments coverage: This coverage covers hospital bills or funeral costs for accident-related injuries sustained by passengers in your insured business vehicles.

What does commercial fleet insurance cover?

Vehicle fleets can vary depending on the size of your business. You can opt for small fleet insurance if you have a few vehicles. However, you can use large fleet insurance if you have hundreds of cars, as with taxi companies.

A custom-made fleet insurance policy provides businesses with general liability and commercial auto coverage in most Canadian provinces. Like the coverages provided in a personal auto insurance policy, fleet insurance coverages typically include:

1. Third-party liability: You are covered if you cause an automobile accident and cause third-party damage or injury. It will cover the costs of settling claims and assist you in paying for claims made against you as a result of filed litigation.
2. Statutory accident benefits: These offer you benefits if you are injured in an automobile, regardless of who caused the accident. These benefits include supplementary medical, rehabilitation, attendant care, caregiver, non-earner, and income replacement benefits. Options exist to increase most of this coverage.
3. Uninsured or underinsured auto coverage: This takes over if an uninsured driver is found liable for an accident that injures or kills one of your employees. This coverage will cover the cost of damage or loss.
4. Collision coverage: Whether you were at fault for the collision or not, this coverage will assist in paying to fix or replace your car if it is damaged or a total loss due to a collision with another vehicle.
5. Comprehensive coverage: Comprehensive coverage protects your vehicle against damage resulting from anything other than a collision or accident, such as theft, vandalism, or fire.

Which commercial insurance should I choose?

Whether you need commercial auto or fleet insurance depends on the nature of your business. Commercial auto insurance is for you if you have a small business with one or two company vehicles. As a result of the heightened likelihood of liability and property damage claims when transporting people or commodities for payment, it is usually more expensive.

On the other hand, fleet insurance covers an entire fleet of commercial cars. Instead of insuring each car individually, you can insure all drivers on all vehicles with this option or designate named drivers.

Get Started With James Campbell Insurance

James Campbell Insurance is the place for you if you’re looking for the right commercial auto insurance to cover your vehicle. At James Campbell Insurance, we have the best policies to protect you and your car. Our customers are our top priority, and we will ensure you can focus on the other important things in life rather than worrying about your vehicle.

For further inquiries or more information, call James Campbell Insurance at 1-855-912-8420 or contact us here.