Many businesses in Lowell use vehicles in the course of their normal business operations. From vans that are used to pick up or deliver goods to trucks that are used in construction projects, all business-owned vehicles in the state of Massachusetts must be covered by a suitable commercial vehicle insurance policy. An independent insurance agent in Lowell can help you find the best policy to meet the state’s coverage requirements as well as your business’s particular coverage needs. Contact an insurance agent near you to start comparing customized commercial vehicle insurance quotes.
What Is Commercial Vehicle Insurance?
Commercial vehicles vary by industry. They can range from smaller vehicles, such as delivery vans, to construction vehicles like dump trucks and front-loaders. They can also include 18-wheeler trucks and large passenger vehicles like taxis and motor-coaches. Motor vehicle accidents can happen anytime, anywhere, and to anyone—especially in the winter, when road conditions can be hazardous.
Drivers of commercial motor vehicles are sometimes at fault for vehicle accidents. If this happens, your company can be hit with large financial losses unless you are covered by sufficient commercial auto insurance. Commercial vehicle insurance is designed to protect businesses that own or use vehicles due to their increased risk of liability lawsuits as well as the loss of income that can arise if a business is left without its necessary transportation.
How Much Does Commercial Auto Insurance Cost in Lowell, MA?
The cost to cover business-owned vehicles will vary from one business to the next. Rates are calculated according to a number of different factors, including:
- The number of vehicles your business is insuring
- The types of vehicles your business is insuring
- Whether the vehicles will be used to transport passengers
- Whether the vehicles will be used to transport hazardous materials
- The estimated number of miles the vehicles will be driven each year
- Whether the vehicles will be used for interstate commerce
- Information about the employees who will be driving the vehicles
- The amount of coverage you wish to purchase
You can minimize your risk of a collision by hiring experienced drivers with good driving records and by ensuring that your company’s vehicles are well-maintained. It is also a good idea to limit the number of hours your drivers spend on the road each day to prevent problems with fatigue. Some commercial vehicle insurance providers offer a discount to policyholders who provide their drivers with safety education and training. Learn more about this and other potential discounts by talking to an independent insurance agent near you.
What Parts of Commercial Vehicle Coverage Are Mandatory in Lowell?
In Massachusetts, commercial vehicle minimum coverage requirements are as follows:
Commercial vehicle liability insurance is designed to cover third-party property damage and injuries. Although Massachusetts is a no-fault state, there is still a potential for being sued for medical costs, especially when a commercial vehicle is involved. The amount of coverage you need can vary from $40,000 for delivery cars to $5 million for trucks carrying hazardous materials. Your local independent insurance agent can advise you on the minimum liability requirements for your particular vehicles.
Personal injury protection (PIP):
Massachusetts is a no-fault state, meaning that you are required to cover your own injuries and damage following a collision. That's why all commercial vehicle policies must include a minimum of $8,000 in personal injury protection to cover medical bills incurred due to an accident. For medical bills that exceed this amount, you can sue the at-fault driver.
Uninsured/Underinsured motorist coverage:
Your policy must include uninsured motorist insurance to cover medical bills incurred in an accident caused by an uninsured driver. Your policy must have a minimum of $20,000 in coverage per person and $40,000 in coverage per accident. Let a local independent insurance agent help you find an affordable policy that meets the state’s coverage requirements.
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What Other Coverage Options Are Available for Lowell Commercial Vehicle Owners?
In addition to the mandatory coverage mentioned above, commercial vehicle insurers offer additional optional coverage, including:
- Collision coverage: This can provide compensation for damage sustained by your vehicle in a collision, regardless of fault.
- Comprehensive coverage: This can cover the cost to repair or replace your vehicle if it is lost or damaged due to non-collision hazards such as severe weather, falling objects, floods, fire, or property crimes.
- Roadside assistance coverage: This can provide coverage for towing or assistance if your company vehicle becomes disabled while out on the road.
- Rental car reimbursement coverage: This can pay for the cost of renting a loaner vehicle while your company-owned vehicle is being repaired so that you can continue with your normal business operations.
- Non-owned auto coverage: This can cover liability costs if an employee is in an accident while using their personal vehicle to carry out company business.
Talk to your local independent insurance agent for help determining which of these coverage options are a good fit for your Lowell business.
Why Work with an Independent Insurance Agent in Lowell?
Company vehicle use is varied, so there is no such thing as a one-size-fits-all policy when it comes to commercial auto insurance policies. A business that relies on a small cargo van for making residential house calls will have vastly different needs than one that uses big-rig trucks for interstate commerce. A local independent insurance agent can help you find a competitively priced policy that meets the Massachusetts coverage requirements.
Find an insurance agent in or near Lowell to begin comparing customized commercial vehicle insurance quotes.