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What to Consider When Purchasing Commercial Car Insurance

Buying commercial auto Insurance is inevitable once you have an automobile business. This is because one, it is a legal requirement and two, there are bound to be accidents even with reduced use. You therefore need to choose and buy an insurance policy cover that best suits your company requirements. Auto insurance may cover many things including liability for bodily injury, cost of loading and unloading, medical and funeral expenses, and property damage liability among others. When choosing a commercial automobile insurance to purchase, you might think the things discussed below.

The kind of coverage you need

It is important to ask the Insurance broker questions regarding what coverage you will receive with a given commercial auto insurance. Ask them what extra coverage is included so that you understand what will be covered particularly if an accident happens. Will the insurance cover cater for the medical bills of injured persons? What about collusion liability? Buy insurance that does cater for these additional coverage.
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The payment Choices available
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Another critical factor to consider is the options that are available for paying for the insurance. Ask the agent if they have annual, bi-annual and monthly payment plans and how much it would cost. Normally, yearly payments are cheaper and or might have reductions while monthly would be a little bit more expensive. If you are not able to afford the annual lump sum payment option, then you will need to get an auto insurance company that has monthly or bi-annual plans and yet is not too expensive.

How many drivers and cars the commercial Car Insurance covers

In case youhave many cars for your company, it might be cheaper to buy a fleet insurance than separate commercial auto insurance for each of your cars. Ask the insurance agent how many drivers and cars could be insured by the specified cover and then compare to get one which has the best offer.

Policy definition for using the automobile for industrial purposes

Also, make sure that you know the definition of the coverage you are buying. You need to know what the limits are before you make the purchase. For instance, you need to know the aggregate limit, which is the maximum amount you can claim in a year and the occurrence limit which is the maximum amount you can claim in one instance. Also notice the limit of what they could be used for if it is covered by a specified insurance. Most insurance covers will have a definition of exactly what the car is insured for and thus it is a good idea to purchase a suitable policy.

Claim Submission

Lastly, you also need to find out how you will be submitting claims. You can ask the insurance agent on tips for making the entry a Smooth encounter. Be sure to read know what you will have to perform in case of an accident.