If you are considering commercial auto insurance in NJ for your business, it is very important that you understand the basic parts of any business auto policy. When you understand certain terms, it is much easier to compare the coverage that is available and also make an informed decision about what you need in terms of coverage. The following information will cover the basics to help you understand the various policies that are available.
Basic Parts of Auto Insurance for Businesses
There are three basic parts which include the physical damage insurance that offers both comprehensive and collision coverage, liability insurance that includes property damage, underinsured and uninsured motorists and bodily damage and other types of coverage, such as labor and towing charges, medical payments and reimbursement for rentals.
The Types of Coverage that are included in a Commercial Auto Insurance Policy
Collision Insurance
This is the coverage that will pay for the damage that occurs to your vehicle if you hit another vehicle, if another vehicle collides with your, regardless of whether or not it is your fault. If your vehicle has been leased or financed, collision coverage may be required.
Comprehensive Insurance
This type of coverage will pay for any damage to your vehicle that occurs from something other than an accident. This includes instances of flood, earthquake, damage from animals, fire, theft and vandalism.
Liability Insurance
This will cover any bodily injury that may occur to others, or any type of property damage that happens to another vehicle if you are the responsible party. This type of coverage also pays for lost wages, medical costs and any legal expenses if a lawsuit is filed against you for an accident.
Underinsured or Uninsured Motorist Coverage
This will pay for any type of property damage or injury that takes place due to an underinsured or uninsured motorist.
Understanding the options that are available for commercial auto insurance in NJ will enable you to make an informed decision for your business. It is crucial that you cover ample coverage for your business to protect you from potential lawsuits if an accident occurs. Visit RSI-Insurance.com to know more.
