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What You Need To Know About Commercial Car Insurance


Commercial car insurance follows a rather unique plan because more cars are being insured and there are a variety of drivers and methods involved. The goal is to find the right package that will adequately cover all the possible risks and dangers to keep the business in top shape even if a mishap or accident might occur. There are different types of plans available depending on the preference of the company and other relevant factors.

Commercial car insurance will be offered based on the type of industry the vehicles belong in. There are several industries involved such as forwarders, mail and package delivery systems, transportation businesses, taxi cab businesses, car rental services, etc. The types of vehicle involved will also differ depending on the industry which is why the plan has to be specifically made to cover for every unit. Business owners have to fill out an application form and provide accurate information about the industry and specific business. The business owner will be assessed based on the particular statistics of the industry. The track record of the business might also help lower the costs of insurance.

The Fleet Size and Condition: Commercial car insurance will also depend on the fleet condition and size. How many vehicles will be insured and what are the specific models of each? The insurance company will want to know the exact model, age and condition of the vehicle. A company mechanic or representative will personally assess every vehicle, including its registration plate and other documents. Some business owners can avail of discounts if they insure very large fleets or large-sized vehicles like trucks and buses. There should be a corresponding contract for every unit insured. Have a lawyer go through the all the papers before agreeing to the terms and signing.

Comparing Companies: There are several companies that offer commercial car insurance so the business owner has to be especially careful to review the history and track record of the group. There are a number of aspects to consider, such as the number of years the insurance company has been operating, how their prices and packages compare with others in the market and the achievements received for covering major companies and large scale problems. Ask for referrals then determine some of the big commercial car names that the insurer also protects. Get honest feedback from current and previous clients.


Most businesses will look for the right financing company to sufficiently cover the entire fleet at the right price. The business owner must speculate all the possible risks, threats and dangers to the business and find the right plan. It will be the job of the financing company to pay for the plan and then the business owner will provide monthly payments to the financing company with interest. This is a more business-oriented approach compared to getting insurance for every vehicle in cash. Some of the financing companies will approach commercial car businesses on their own, although some can also be located on the Internet.

By Seth Evan, published at 02/17/2012
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