From pizza delivery cars headed to the Worcester Polytechnic Institute campus to large construction vehicles to semi-trucks taking merchandise to area retailers, there are many commercial vehicles on the roads of Worcester, MA. A solid commercial auto insurance policy can cover these vehicles in the event of an accident. An independent insurance agent in Worcester can help you find a commercial vehicle insurance policy that is both affordable and compliant with Massachusetts state laws. Find an insurance agent near you to learn more.
Why Is Commercial Auto Insurance Necessary in Worcester?
Company-owned vehicles are required by law to be covered by commercial auto insurance. Even if this coverage were not mandatory, it makes sound financial sense. Why? Because accidents can happen any time, any place and to anyone. This is particularly true during the winter months, when snow, ice, and slush can create hazardous driving conditions in Worcester.
Whether your driver is involved in a fender bender on Lincoln Street or is responsible for a multi-car pileup on I-190, the costs to your company can be exorbitant unless you are covered by suitable commercial auto insurance. This insurance is designed to shield your company from large financial losses due to liability lawsuits, property damage, and the loss of income that can occur due to not having access to a necessary vehicle while it is being repaired.
How Much Does Commercial Auto Insurance Cost in Worcester, MA?
The cost to cover business-owned vehicles will vary from one company to the next. This is because rates are calculated according to a variety of factors such as:
- How many vehicles your company is insuring
- The types of vehicles that are being insured (e.g., car, truck, cargo van, taxi, semi-truck, dump truck, etc.)
- The vehicle’s passenger capacity if it will be used to transport people
- The types of materials the vehicles will be transporting
- The driving histories of the employees who will be operating the vehicles
- Your company’s commercial vehicle claims history
- The amount of insurance and the coverage options you are purchasing
Taking steps to increase driver safety can reduce the risk of accidents. That's why many commercial auto insurance providers offer discounts to policyholders who provide their drivers with routine safety training and educational materials. Talk to your local insurance agent to learn more about this and other potential discount opportunities.
What Does Worcester Commercial Auto Insurance Cover?
Commercial auto insurance providers will offer your Worcester business a mixture of required and optional coverage types. Keep in mind that if your vehicle will be used for interstate commerce, it will also need to meet federal liability coverage requirements. Your local insurance agent can help you review the coverage needs of each of your company vehicles.
- Commercial vehicle liability insurance: This can cover third-party injuries and property damage if one of your drivers is responsible for a collision. Your state-mandated minimum coverage amount can range from $40,000 to $5 million, depending on the type of vehicle you are insuring and the types of materials it will be used to transport.
- Uninsured motorist insurance: This is designed to cover injuries your drivers may sustain in a collision that is the fault of an uninsured, under-insured, or hit-and-run driver. You are required to carry bodily injury coverage in the amount of at least $20,000 per person, and $40,000 per accident.
- Personal injury protection (PIP) insurance: Massachusetts is a no-fault state, so you must carry a minimum of $8,000 in personal injury protection insurance to cover medical treatment following an accident, regardless of fault. Workers’ compensation insurance may also provide some coverage.
- Collision insurance: This can cover the cost to repair vehicle damage or replace a totaled vehicle if it sustained damage in a collision, regardless of fault.
- Comprehensive insurance: This can cover the cost to repair or replace your vehicle if it is lost or damaged due to non-collision hazards such as falling objects, floods, fire, or theft.
- Gap insurance: This is designed to bridge the coverage gap in the event that your vehicle is totaled and its assessed value is lower than the amount you still owe on it.
- Towing and roadside assistance insurance: This is designed to cover the cost of assistance if your company vehicle becomes disabled while it is out on the road. This coverage is particularly cost-effective for companies that own vehicles that require specialized towing.
- Non-owner auto insurance: This is designed to provide liability coverage if one of your employees or contractors is in an accident while operating a vehicle that is not owned by your company but is being used to do a job for your business.
- Rental reimbursement insurance: This can cover the cost of leasing a loaner vehicle so that you are able to continue normal operations while your company-owned vehicle is being repaired.
If you wish to protect your business with more liability coverage than your commercial auto insurance policy will allow, you can also purchase an umbrella insurance policy. These affordable policies pick up where your commercial vehicle policy leaves off and can provide millions more dollars’ worth of coverage. A local independent insurance agent can help you determine which optional coverage types are ideal for your Worcester business.
Why Work with an Independent Insurance Agent in Worcester?
Commercial auto insurance can cover everything from small cars to large buses, so each business has its own requirements and needs. As a Worcester business owner, it is to your advantage to seek the advice of a local independent insurance agent when you are shopping for appropriate coverage for your company vehicles.
Find an independent insurance agent in or near Worcester to learn more, and you can soon be comparing customized commercial auto insurance quotes from a selection of reliable insurers.
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