Before allowing your emotions to decide, it is better to understand what is all about commercial auto insurance, including its coverage and even the typical misconceptions about it. As a business owner who uses commercial vehicles, may it be vans, trucks, or your personal car, you need to be aware of what is a fact or a mere gossip surrounding this type of insurance. Here are the common myths that should not disrupt you on making a decision about insurance purchases.
Part-Time Coverages for Seasonal Business
Your business and contractors only use a vehicle seldom in a year, unless you are a transporting business. However, those vehicles for tourism businesses need insurance all year, even if tourism companies are only in demand during summer. In this case, insurance companies can give discounts for continuous coverage, which is advisable as multiple insurance renewal is more expensive due to restarting fees. Besides, if your vehicle got damaged for any reason during a lapsed coverage period, it will not be covered unless your policy is already reinstated.
Premiums Must Be Paid Upfront
Although it is no such secret that paying full and upfront provides an overall discount for a policy, most insurers do not recommend and require this type of prepayment. In fact, you can take advantage of interest-free financing when you are looking for commercial auto insurance.
All Insurance Companies Offer 24/7 Service
It is unfortunate to know, but not all insurance companies indeed operate 24/7, so, like regular auto insurance, commercial ones may only be available during business hours at the day. Transactions like claims, bills payments, and adding insured vehicles may take a while, as it may have to wait in the service is off for the night. As a good rule of thumb, ensure the insurance company’s availability before deciding on it.
Commercial Auto Insurance Policies Are More Expensive Than Personal Policies
All pricing for insurance coverage is dependent upon your business needs, and commercial auto policy is not an exception for this stand. Some elements may reflect higher policy price as it is dependent upon the area of your vehicles, such as a ZIP code with a notion known for a high amount of theft or damage. Thus, elements such as the coverage limits, amount of deductible, and types of coverage should also be considered to get a more extensive scope.
Insurance can be as simple but can get complicated if not paid enough attention. You can lose a sum of money, waste your precious time and efforts over unuseful coverages. If possible, consult an insurance agent to guide you more about the commercial auto insurance policy.
At All Things Insurance, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (763) 645-5450 or Click Here to request a free quote.