Commercial Auto Insurance in Virginia
What is commercial auto insurance?
Vehicles used in Virginia for business activities are typically required to have suitable auto insurance coverage. Since these are commercial vehicles, coverage is usually obtained through commercial auto insurance.
Commercial auto insurance is specifically designed to cover vehicles driven for business activity. Policies normally protect the vehicles, the business, and anyone in a company car or truck.
What businesses in Virginia need business auto insurance?
Any Virginia-based business that operates vehicles for business-related purposes likely needs business auto insurance. Personal auto insurance generally isn’t sufficient for business-owned vehicles.
Any business auto policy purchased likely needs to at least meet the state’s minimum coverage requirements, which are known as 25/50/25 coverage. The numbers refer to minimum limits: $25,000 of bodily injury coverage per person and $50,000 per accident, and $25,000 of property damage coverage.
Much higher limits and additional coverages are broadly recommended, as a single accident could quickly exceed these minimum requirements. Business owners and managers can work with an insurance agent who specializes in business auto policies to determine exactly what limits should be chosen.
What protections are included in business auto insurance policies?
The specifics of a business auto policy can vary, but these usually offer protections such as the following:
- Bodily Injury Liability: May cover others’ injuries if an employee causes an accident while driving one of the company cars.
- Medical Payments Coverage: May cover medical expenses if an employee causes an accident with a company car.
- Property Damage Liability; May cover damage to other property, including other vehicles, if your business is liable for an accident.
- Collision Coverage: May cover damage to company vehicles if they’re damaged in an accident with at least one other vehicle.
- Comprehensive Coverage: May cover damage to company vehicles if they’re damaged in other incidents, such as theft, fire or hail.
- Gap Coverage: May cover the difference between what a business owes on vehicles and what they’re actually worth, if the vehicles are a total loss.
Are commercial auto premiums tax-deductible?
Premiums for commercial auto policies are generally tax-deductible as a business expense, as long as the covered vehicles are driven for business operations.
Before deducting any insurance premiums, however, businesses should first confirm their deduction with a certified public accountant or other tax professional.
How do commercial auto policies differ from personal auto insurance policies?
Commercial and personal auto insurance policies primarily differ in the vehicles they insure. Personal auto policies are mainly for personal vehicles, while commercial policies are mainly for business-owned vehicles.
In many cases, the terms of commercial policies are adjusted with extra coverage options and higher limit options than personal policies might have. This is especially true when insuring business-owned trucks and vans
What’s hired and non-owned business auto coverage?
Hired and non-owned business auto coverage generally gives businesses liability protections when a business uses vehicles it doesn’t own. For example, the coverage could be useful when employees make deliveries with their own cars. It also might be useful if renting a replacement vehicle while an owned one is repaired.
Importantly, hired and non-owned coverage normally only provides liability protection. It’s usually left to employees to insure their vehicles against damage if using their own cars for deliveries.
Do self-employed sole proprietors need business auto insurance?
Sole proprietors who use a personal vehicle for their business should work with an insurance agent who specializes in business auto insurance to make sure they’re fully covered when driving.
In many situations, a policy endorsement can be added to a personal auto policy so that limited business-related driving is covered. A knowledgeable agent can help determine whether this would be sufficient in a specific situation.
How can Virginia businesses get commercial auto insurance?
If you need to insure one or more vehicles that are used for business operations, whether a personal car or business-owned vehicle, contact the independent insurance agents at Hampton Roads Insurance. Our Virginia agents will help make sure your vehicles are well protected with commercial auto insurance.
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Newport News, Virginia 23601
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