How Does Commercial Auto Insurance Work?

Arizona companies that use vehicles to conduct business must have certain minimum amounts of liability insurance coverage. However, this basic coverage doesn’t typically provide adequate financial protection.

The agents at Facil insurance in Phoenix, Arizona, can help your company get appropriate commercial auto insurance to comply with state laws and meet your organization’s needs.

What Commercial Auto Insurance Is Required?

Arizona businesses that use vehicles must purchase the following coverage:

• Property liability auto insurance may help cover your company’s legal liability for third-party accident-related property damage up to the policy’s limits.
• Bodily injury liability auto insurance may help cover your company’s legal liability for third-party accident-related injuries up to the policy’s limits.

Arizona’s minimum limits rules may change without notice. Your agent can help you understand the most recent liability limit requirements. It’s wise to check in with your agent when your policy renews to review your coverages and verify that your policy meets the state’s minimum limits. They may recommend purchasing more than the minimum limits to provide additional financial protection.

Umbrella insurance can help extend the liability limits across your company’s policies. Your agent may recommend this economical option to help provide additional financial protection.

If your company finances or leases vehicles, you are also subject to your lienholder’s insurance requirements, which may include the following:

• Comprehensive insurance may help pay to repair or replace the covered vehicle after a non-collision-related incident such as theft, vandalism, fire damage or storm damage.
• Collision insurance may help pay to repair or replace the covered vehicle after a collision with another vehicle or object.
• Guaranteed asset protection (GAP) insurance may help pay off the financed or leased vehicle if it’s a total loss after a covered accident or incident.

Your insurer may provide a settlement after an accident or incident per your policy’s stated coverage. Your company may be responsible for paying your policy’s deductible before coverage kicks in.

What Optional Commercial Auto Policies Are Available?

Commercial auto coverage is highly customizable. Your agent may recommend that you add optional coverages, including the following:

• Medical payments (MedPay)
• Uninsured/underinsured motorist coverage
• Towing coverage
• Roadside assistance
• Auto glass coverage

How to Get Commercial Auto Insurance for Your Arizona Business

Contact Facil Insurance today to build a customized commercial auto insurance plan. Our agents can help you get multiple quotes from reputable insurance companies.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.