Commercial Auto Insurance made simple

Explore the essential aspects of commercial auto insurance.

Commercial Auto Insurance

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Commercial Auto Insurance

Commercial auto insurance can help businesses save on repair and recovery costs when mishaps happen.

This is especially helpful as accidents cost employers up to $57 billion in repairs in 2017 alone. These costs can cut deep into your company’s budget if you don’t adequately plan for such unforeseen situations.

Commercial auto insurance covers cars involved in accidents, broken down vehicles and vehicles that may have been vandalized. It also covers the medical expenses of those involved in the accident and legal fees where necessary.

It is available for those doing business with their vehicles, either small or large scale. There are several companies you can get from in Canada, like Zensurance, Gallagher, Thinkinsure.

Knowing how and where to get commercial auto insurance in Canada can be daunting. That’s why we put together this guide to help you understand how the policy works and ways you can benefit from it. 

What is Commercial Auto Insurance

For every asset you have, you would routinely want it to last for a while. The same applies to vehicles. Houses, other landed property and even intellectual work can be insured. The same also applies to your cars and automobiles. 

Commercial automobile insurance is a type of insurance that is typically used to cover broken-down work vehicles. It also covers legal and medical fees that are incurred after an accident. 

There are some vehicles that commercial Auto insurance covers. They include delivery vans and trucks, food trucks, semi trucks, cars and other vehicles that are used for business. It could be owned or leased for the business. 

Types of Commercial Auto Insurance

There are three main types of commercial auto insurance. 

Commercial Auto Use

Commercial auto use is mainly for vehicle owners who use their vehicles strictly for work and work-related purposes. An example is a vehicle that has a towing ramp attached to it. It becomes a towing truck. Another remarkable feature is that the vehicle has to be used on a daily basis.

Business Use

This is for small business owners, entrepreneurs functioning alone, or doing business from home. You may have to use your vehicle to deliver to your clients and also meet up with them. 

Business Use for Multiple Drivers

If you have more than one driver for your vehicle, business use for multiple drivers is recommended. The insurance comes through you as the owner, but recognition is given to the employees that use your vehicle.

What Does Commercial Auto Insurance Cover?

It is worth noting that auto insurance for commercial vehicles is specifically for vehicles used for business purposes. These include construction vehicles, food trucks and semi-trucks. 

Types of Commercial Auto Insurance Coverage.

  • Damage from a collision.
  • Comprehensive physical damage.
  • Automobile theft.
  • Medical fees and expenses as a result of collision damage.
  • Uninsured driver negligence.
  • Liability

Damage From Collision

Collision damage is when you get rammed into another vehicle when driving along the road. If your commercial vehicle gets damaged in the process, the insurance covers it. 

Comprehensive Physical Damage

As a vehicle user, there are issues you often encounter with vehicles. They often break down due to wear. Other times, it may be a result of vandalism or extreme weather conditions. Commercial auto insurance comes in handy here.

Automobile Theft

You could be confronted with circumstances as a commercial car owner. One of them is theft. If you have a food truck, you could wake up one morning and find it gone. It could also get snatched at gunpoint. Issues like this can be solved with commercial auto insurance. 

There could be caveats, though. Investigations would have to be launched to ensure it is not your fault. 

Medical Fees and Expenses as a Result of Collision Damage

In most accidents, people get hurt. It could be the driver, occupants of the vehicle or even pedestrians. Injuries mean hospital visits, and hospital visits mean money.

This could be as much as thousands of dollars, depending on the severity of the wound. You do not need to bother yourself if you have commercial auto insurance. It covers it. 

Liability

This is a commercial driver’s nightmare. Every human slips once in a while, and there are times when you’ll find yourself on the other side of the divide. You may run a red light, sleep off on the steering, and bash another road user’s car. The person who was bashed may decide to sue you for damages. 

You may also destroy someone else’s property in the process and get sued. As a commercial auto insurance subscriber, you do not need to break into a sweat. Your insurance handles it. 

Uninsured Driver Negligence

Your vehicle may get rammed into by another vehicle that ran a red light. Routinely, the bills should be on him as his insurance company steps in to cover the cost. A problem may arise when his insurance has not been renewed. Your commercial auto insurance also saves the day. 

Rental Property

Getting involved in an accident and having your vehicles need to be towed off the road can be challenging. You may keep thinking of how to go about it. 

On the other hand, for someone with a commercial auto insurance holder, all he needs is to inform the insurance company. They swing into action and pay for the cost of transporting your vehicle to someplace safer. 

Who Needs Commercial Auto Insurance?

The burning question now is who needs commercial auto insurance, and we are about to delve into it. 

If you use your vehicle for commercial purposes, then you need insurance. This is irrespective of your employment details- full-time or part-time worker, self-employed or independent. 

If you fall into any of the listings below, then you need the insurance provider and fast. 

Doing Deliveries With Your Vehicle. 

You may decide to work with a local pizzeria in your locality to deliver pizza to their customers. Other examples are coffee delivery, running errands for customers with your vehicle and much more. You would most likely need a commercial insurance policy to protect your vehicle. 

Chauffeuring Clients. 

Joining the taxi business has become a whole lot easier. With apps like Uber, you can sign up as a taxi driver. All you need is a vehicle. Chauffeuring clients or passengers with your vehicle is a business that requires commercial auto insurance. This is because you might encounter challenges like accidents that you need insurance for. 

Transportation of Goods

If you have a vehicle that you use to carry goods to transport then you need insurance. This could be as carrying heavy tools or machinery to the site or agricultural produce to a different city.

This is pretty self-explanatory. In the course of your business, there could be accidents, vandalism and even medical bills to pay. Your insurance company would step in and address the challenges. 

Leased Vehicles

In some cases, you can lease your vehicles out to individuals to drive on your behalf. This can be either as a food truck, a heavy-duty vehicle or an Uber. Using a commercial auto insurance policy helps protect against automobile issues that may arise in the course of action. 

How to Buy Commercial Auto Insurance Coverage

Buying commercial auto insurance coverage needs some analysis before you can plunge into it. This part will take you through buying commercial auto insurance and what you should look out for. 

Choose Your Vehicle for Insurance.

There are chances you may have multiple cars and want to get insurance coverage for the one you use for your business. Your vehicle identification number and driver’s license need to be submitted to get quotes.

Cross Check the Coverage You Will Need.

The age and number of vehicles you want to insure are important determinants for coverage. Other factors are the kind of business you want to do, the security and even weather conditions in your locality. It is recommended that you insure up to $200,000 for liability protection in Canada.

Cross Check the Quotes from Different Insurance Companies

You can get quotes from Canadian insurance companies online and go through them. You need to check out their coverage and price to determine the best service for you. There may be other factors like the province you live in and the laws guarding each province. 

Purchase an Insurance Policy.

The final step is buying an insurance policy. For some of the insurance companies, communication with you is through an agent. The agent will help you navigate the purchase. You can also buy insurance policies online for some other companies. 

Top Canadian Commercial Auto Insurance Companies

There are several commercial auto insurance companies that operate in Canada.

We have analyzed the best companies that offer commercial auto insurance and selected the top options. The top options are based primarily on customer feedback. The companies offer competitive coverage that is sure to meet your requirements.

Zensurance

Saving time and money is very important, and this is one of the strong suits of the company. It boasts over 150,000 users across Canada and helps you save about 35% of your money.

One feature of Zensurance commercial auto insurance is that it has third-party liability. It also offers collision and comprehensive coverage and can be accessed from anywhere. 

Aviva

This is one of the largest insurance providers in Canada. They offer commercial auto insurance coverage. They offer third-party liability coverage, accident benefits, collision and comprehensive coverage and specific issues. 

There are several auto insurance breakdowns under Aviva. It includes

  • Individual-rated commercial auto: This type covers one vehicle
  • Fleet Insurance: This is For businesses that have up to 5 vehicles.
  • Garage Insurance: This type of policy provides insurance for your customer’s vehicle when it’s in your care or custody. 

Gallagher

Gallagher provides commercial auto insurance for Canadian residents. They have unique services, which include safety and compliance assistance. Others are endorsements to protect you, and it ranges from covering rental cars to protection when carrying dangerous goods. 

Thinkinsure

This is another top Canadian insurance company that offers commercial auto insurance. Thinkinsure caters to both small and large business owners but is more small-business friendly. You can get a quote from them and compare it with other insurance companies.

Commercial auto insurance conclusion

The advantages of insuring your vehicle as a business person cannot be over-emphasized. It saves you a lot of hassles when the going gets rough. Each insurance company has its service premium. You can also get in touch and request a quote for their commercial auto insurance policy.

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Offers shown here are from third-party advertisers. We are not an agent, representative, or broker of any advertiser, and we don’t endorse or recommend any particular offer. Information is provided by the advertiser and is shown without any representation or warranty from us as to its accuracy or applicability. Each offer is subject to the advertiser’s review, approval, and terms. We receive compensation from companies whose offers are shown here, and that may impact how and where offers appear (and in what order). We don’t include all products or offers out there, but we hope what you see will give you some great options.

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September 26, 2023
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FAQs about commercial auto insurance

What factors affect the cost of auto insurance?

There are quite a number of factors that determine the cost of commercial automobile insurance. The car you use for your business and the type of business you do are key factors. Others are your driving record and your credit history.

How do commercial auto insurance and personal insurance differ?

The two insurance policies are similar, but significant differences can be noted. Vehicles used for business break down more because of wear, hence, they need more protection. Commercial auto insurance has higher liability limits and is tax deductible. Personal insurance, unfortunately, does not have these features.

What is the difference between business and commercial auto insurance?

Commercial auto insurance has been explained above. On the other hand, business auto insurance is for vehicles that are driven in the business process. A major example is the company car that is used to drive to clients' houses for business.

What is not covered by commercial auto insurance?

Commercial auto insurance does not cover every vehicle you own. This is against the popular belief that any vehicle used for business can be insured. Unfortunately, vehicles that are not strictly used for business would not be covered by insurance.

What is no-fault car insurance?

It is a system put in place that will make insurance companies pay you your claims. This is irrespective of who is at fault. The system varies from province to province, and its major aim is to avoid delaying claims and medical care.

Commercial Auto Insurance made simple

Explore the essential aspects of commercial auto insurance.

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