Commercial Auto Collision Coverage 

For businesses that rely on vehicles, accidents can disrupt operations and lead to unexpected costs. Commercial auto collision coverage may help manage those risks by covering damage to your company vehicles after a crash, regardless of who is at fault.

What is Collision Coverage and What Does it Cover?

Collision coverage may cover the costs for damage to your vehicle that arises from a collision with another vehicle or object. It applies even if your driver is responsible for the accident. Collision coverage is optional in most states but may be required by lenders or leasing companies. It is essential for businesses with fleets or vehicles used daily for deliveries, transportation or service calls.

Collision coverage may apply in various situations, including the following:

• A delivery van hits a guardrail on an icy road

• A company car is rear-ended at a stoplight

• A work truck collides with a tree while backing up

• A fleet vehicle is damaged in a multi-car pileup

Collision coverage does not apply to every type of damage. It typically excludes losses that fall under other types of auto insurance. For example, it won’t cover events usually handled by comprehensive coverage, including damage caused by theft, vandalism, fire or natural disasters. Collision coverage also doesn’t pay for mechanical breakdowns, wear and tear or damage to another person’s vehicle or property. If your business vehicle is used for racing or other nonstandard purposes, those incidents are also likely to be excluded.

What is a Collision Insurance Deductible?

A deductible is the portion of a claim your business is responsible for paying before the insurance company contributes to the repair costs. Deductibles apply only to damage involving your vehicle or property. They do not apply to harm caused to others. Choosing a higher deductible usually lowers your premium, but it also means paying more upfront in case of a claim.

Keep your business moving forward after an accident. Contact Licona Insurance Group today to learn more about commercial auto insurance.

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.