From florist delivery cars to construction vehicles to semi-trucks rolling down I-93, there are many commercial vehicles on Dorchester’s roadways. If you are a business owner in this Boston neighborhood, you will want to be sure that your company-owned vehicles are covered by the right commercial auto insurance policy. An independent insurance agent in Dorchester can help you find a competitively priced commercial vehicle insurance policy that is compliant with state and federal laws. Find an insurance agent near you to learn more.
What Is Commercial Auto Insurance?
Many businesses own vehicles that they use as part of their normal operations. These can include cars that are used for making local deliveries as well as larger vehicles such as trucks, cargo vans, 18-wheelers, buses, and construction vehicles like dump trucks. Regardless of their type, business-owned vehicles must be covered by commercial auto insurance. This insurance is designed to protect your company from the large financial losses that can arise due to liability lawsuits, property damage, or loss of income due to not having access to a necessary vehicle if it is being repaired.
How Much Does Commercial Auto Insurance Cost in Dorchester, MA?
The cost to cover commercial vehicles will vary from one company to the next. This is because rates are calculated according to several factors such as:
- How many vehicles your business needs to insure
- The types of vehicles you are insuring (e.g., car, van, bus, truck, etc.)
- The vehicle’s passenger capacity if it will be used for transporting people
- Whether your vehicles will be used to transport hazardous materials
- Whether the vehicles will be used locally or for interstate commerce
- Information about the employees who will be operating the vehicles
- The amount of coverage you wish to purchase
You can reduce the risk of accidents by taking precautionary steps such as limiting the amount of time your drivers spend on the road, making sure your vehicles are well-maintained and providing your drivers with routine safety training and educational materials. Doing so can often earn you discounts on your commercial vehicle insurance policy.
How Much Commercial Auto Insurance Does My Dorchester Business Need?
Massachusetts is a no-fault state, so all commercial auto insurance policies must include a minimum of $8,000 in personal injury protection, or “PIP.” This is designed to cover medical expenses if your driver is injured in an accident, regardless of who was at fault. Additionally, vehicle owners in this state are required to carry uninsured motorist coverage to cover bodily injuries sustained in an accident with an uninsured driver, since these costs may exceed what your personal injury protection insurance can cover. The minimum uninsured motorist coverage you need to have is $20,000 per person and $40,000 per accident.
Most importantly, all commercial auto policies must also include liability coverage. This is designed to provide coverage for third-party property damage and bodily injuries if your driver is responsible for a vehicle collision. The state-mandated minimum liability coverage requirements vary according to the commercial vehicle’s type and size. In the state of Massachusetts, the amount of liability coverage you must carry for commercial trucks is determined primarily by the type of cargo that is being transported.
- Trucks used to transport oil: $1,000,000 minimum liability coverage.
- Trucks used to transport hazardous materials (hazmat): $5,000,000 minimum liability coverage.
- Trucks used to transport household goods: $300,000 minimum liability insurance.
- Trucks used to transport general freight: $750,000 minimum liability insurance.
These minimum requirements apply to commercial vehicles that are used only within the state of Massachusetts. If your truck is used for interstate commerce, your liability coverage must be high enough to comply with federal rules and regulations. Your insurance agent can help you find an affordable policy that is in full compliance with the law.
What Does Commercial Auto Insurance Cover?
In addition to the liability coverage and personal injury protection that is required by law, commercial auto insurance offers several policy options that can help you further protect your business finances. Some coverage options you may want to consider including in your commercial auto insurance policy include:
- Collision insurance: This is designed to cover the cost of repairing damage your company vehicle has sustained in a collision, regardless of fault.
- Comprehensive insurance: This is designed to cover the cost of repairing non-collision-related damage to your company vehicle, such as that caused by falling objects, fire, floods, or property crimes.
- Towing and roadside assistance insurance: This is designed to cover the cost of a service call if your company vehicle becomes disabled while out on the road.
- Rental reimbursement insurance: This can cover the cost of replacing your damaged vehicle with a rental while repairs are made. That way, your business can continue with normal operations.
- Non-owner auto insurance: This is designed to provide liability coverage if one of your employees or contractors is in an accident while doing a job for your business in a vehicle that is not owned by your company.
You may also want to consider supplementing your commercial auto insurance policy with umbrella insurance. This insurance is designed to boost your liability coverage limits well beyond what your commercial auto policy can provide so that you can further protect your business finances. Your local independent insurance agent can help you determine which optional coverage types are a good fit for your Dorchester business.
Why Work with an Independent Insurance Agent in Dorchester?
Commercial auto insurance covers everything from small cars to large buses, so you will want to be sure that you have a policy that is designed to meet the specific needs of your particular business. A local independent insurance agent can provide you with advice and guidance when you are shopping for appropriate coverage for your company vehicles.
Contact an insurance agent in or near Dorchester to start comparing a selection of customized commercial auto insurance quotes.
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