When you or one of your employees is in an auto accident while driving for work, you need more than a personal auto policy to cover it. Only commercial auto insurance protects your business assets, vehicles, and the drivers inside. From the personal vehicles that double as work trucks, to entire fleets of autos, commercial auto coverage offers protection for the hard working vehicles you use in your construction business.

Commercial Auto Insurance

Whether you are a subcontractor or handyman who uses the same auto for personal and business purposes, or a construction business owner with a fleet of vehicles, commercial auto provides coverage for your business vehicles that personal auto simply can’t.

California, like most states, requires you to carry a certain amount of insurance in order to drive. The bare-bones minimum requirement is bodily injury liability coverage of $15,000 per person/ $30,000 per accident, and property damage liability coverage of $5,000 per accident. Considering the litigious nature of our society and the rising costs of hospital stays and car repairs, many people find it prudent to purchase additional limits.

Remember, if you cause a serious accident, minimum Commercial Auto Insurance may not cover you adequately. That is why it is a good idea to buy more than what your state requires.


Who Needs Commercial Auto Insurance?

When you have a mixed-use auto, such as a personal truck that you use for work, you may be wondering if you need commercial auto. Personal auto policies most likely won’t cover you if you’re in an accident while using your vehicle for work purposes. You may need commercial auto coverage for your business if:

  • You use your personal auto for work purposes.
  • Your employees use their own personal autos for your business.
  • You ever let your employees use your auto for work purposes.
  • Your business owns, rents, or leases autos.

What Kind of Commercial Auto Do You Need?


We can help you find the right amount of commercial auto coverage for your business autos to cover you against accidents, and the injuries, property damage, and even lawsuits which may follow.

Your commercial auto coverage is likely to include liability insurance, since it’s often the minimum coverage required by law in most states. You can go beyond the minimum and fully protect your business assets from the risks of the road with additional coverage, such as:

Liability Insurance
Liability coverage is the foundation of any auto insurance policy and is required in most states. If you are at fault in an accident, your liability insurance will pay for the bodily injury and property damage expenses caused to third parties in the accident, including legal bills. Bodily injury expenses include medical bills and lost wages. Property damage expenses pay for the repair or replacement of things you wrecked. The third party may also decide to sue you in order to collect “pain and suffering” damages.

Collision & Comprehensive Coverage
If you cause an accident, collision coverage will pay to repair your vehicle. You usually can not collect any more than the actual cash value of your car, which is not the same as the car’s replacement cost. Collision coverage is normally the most expensive component of auto insurance. By choosing a higher deductible, say $250 or even $500, you can keep your premium costs down. However, keep in mind that you must pay the amount of your deductible before the insurance company kicks in any money after an accident. Insurance companies often will “total” your car if the repairs the company must pay exceed what the car is worth.

Comprehensive Coverage
Comprehensive coverage will pay for damages to your car that were not caused by an auto accident: Damages from theft, fire, vandalism, natural disasters, or hitting a deer all qualify. Comprehensive coverage also comes with a deductible, and your carrier will only pay as much as the car was at the time of damage.

Because insurance companies normally will not pay you more than your car’s book value, it is helpful if you have a rough idea of this amount. Most insurance adjusters use the Kelley Blue Book. The National Automobile Dealers Association also publishes the Official Used Car Guide, which is updated each month. If your car is worth less than what you are paying for the coverage, you are better off not having it.

Uninsured/ Underinsured Motorists/ Coverage
Uninsured motorists (UM) coverage pays for your injuries if you are struck by a hit-and-run driver or someone who does not have auto insurance. It is required in many states.

Underinsured motorists (UIM) coverage will pay out if the driver who hit you causes more damage than his or her liability coverage can cover. In some states, UM or UIM coverage will also pay for property damages. Given the prevalence of uninsured drivers nationally, this coverage is essential. On average, it costs less than $40 a year for $100,000 worth and will make up for anything your medical insurance doesn’t cover.

Medical Payments
MedPay will pay for you and your passengers’ medical expenses after an accident. These expenses can arise from accidents while you are driving your car, someone else’s car (with their permission), and injuries you or your family members incur when you are pedestrians. The coverage will pay regardless of who is at fault, but if someone else is liable, your insurer may seek to recoup the expenses from them.

Remember, tools and equipment are not covered in a commercial auto policy, so be sure to protect your valuable tools with an inland marine policy.

Get Commercial Auto Insurance Today

Aegis Insurance Markets currently is able to help contractors and construction professionals cover their work vehicles and fleets in most states. We will work with you to find the right auot policy for your specific needs. We specialize in contractor insurance, and have access to a variety of insurance companies to provide a custom solution for your commercial auto needs within your budget. Call us today at (800) 579-6369 or complete the form below for your free quote, and we will take care of the rest.