Comparing commercial
van insurance is a worthwhile endeavor.
If you operate a commercial van for your business, you will want a commercial auto policy, not a personal auto policy. Comparing commercial auto policies is tricky, however, particularly if you are not used to dealing with business insurance. You will want to know whether you are covered to drive any vehicle or just the van you list on the policy. You may also wonder whether all drivers are covered or only those you list. Following a few simple steps will help you understand what coverages and limitations exist in the policies you are comparing.
Instructions
1. Check the liability limits. This is the most important part of your policy. Make sure that you are comparing apples to apples, in that each of your quotes has the same limit of liability. One million dollars or more is usually the recommended coverage limit for liability. If your carrier doesn't offer limits higher than $1 million, you can usually buy an excess or umbrella policy for additional limits.
2. Compare other coverages. Check to see if your quotes contain medical payments coverage. This covers injuries to passengers, and you will want a high limit here if you have a passenger van. If you are in a state that uses PIP (Personal Injury Protection) coverage, check the limit. Be sure that all of your quotes provide uninsured and under-insured motorist at the same level of coverage as your liability limits. If you are covering your van for physical damage, check the deductibles.
3. Ask what vehicles are covered. The quote may or may not disclose this. It is possible to buy a policy that will only cover your liability for operation of the vehicle you schedule, but you can also buy endorsements or policy forms that will cover your business for the operation of rented vehicles; borrowed vehicles; your employees using their own vehicles; or even a policy that will cover any vehicle. This is a crucial step and a piece of information you need to know before you make a purchase decision.
4. Ask what drivers are covered. This will likely not be disclosed on the quote. Traditionally, commercial auto insurance companies asked for a list of drivers and assumed that the insured business would be honest enough to report any new drivers. Even if an insured failed to report an occasional operator they would still cover a claim involving this operator. The carrier or agent would run driving reports on each driver and let the insured know if any drivers were not acceptable. Today, more and more carriers are beginning to demand that all drivers actually be named on the policy and are even adjusting your rates based upon the individual driving record of your employees. Check with your agent to see which type of policy you have and consider this when making your decision.
5. Research the carriers' financial strength ratings. There are many public websites available that will list insurance companies' financial strength ratings. Look for ratings of A and above to ensure you are with a carrier that can pay its claims and offer a stable insuring relationship. If you have a great rate from a C-rated carrier, it will probably be worth the extra premium to trade up to an A-rated company.
