Buying commercial auto insurance provides you with a range of benefits. The investment allows you to have repairs made to your vehicle if a covered incident occurs. What happens if your vehicle is inaccessible, though? To some companies, this can be very difficult to manage as it limits your ability to operate your company. Your coverage may help you.
Every Policy Is Different
It is always important to read the details of your policy before making any decisions. However, your agent can be of help to you. Most basic commercial auto insurance policies cover rental vehicles if they are necessary to the operation of your business. Here is an example.
Let’s say you are in a collision with one of your box trucks. You rely on that truck for deliveries to customers. Your auto insurance covers the collision repair work. The work will take some time, though, perhaps even a few weeks. In this situation, the insurer may provide you with financial compensation to cover a rental to meet your needs.
However, many policies only provide a specific dollar amount of coverage for a rental. Others will only pay you a certain amount per day that you use the vehicle. This can make renting a larger truck more difficult. If you are in an accident covered by your policy, be sure to verify the amount of coverage you have for your vehicle and the rental as needed.
What If Someone Else Causes the Damage?
In some situations, another party may be responsible for the losses you have. For example, another driver may be responsible because he hit your vehicle.
In this situation, the other driver’s insurance should pay to cover your vehicle’s repairs. This should also include coverage for any other losses you have. For example, it might cover the cost you suffer to rent a replacement vehicle during the repair period. All the same, if the policy won’t cover you, you may need to file a claim for this coverage with your insurer, though.
What should you do when you are in an accident? No matter the type of vehicle or the type of business, contact your agent first. Let your business insurance agent provide insight into what your options are. Learn about the amount of rental insurance coverage provided to you through your policy. It can also help to take a closer look at these details now before an accident occurs. Discuss your options with increasing your coverage if necessary.
Also Read: What to do After You are Involved in an Accident