Do You Need Insurance To Buy A Used Car From A Dealership
Commercial auto insurance covers vehicles’ physical damage and liability coverage for the amounts and situations not covered by personal auto insurance. This is because there is a higher risk in a commercial vehicle than in a personal car. According to Progressive, more than 886,000 small businesses required commercial auto insurance to protect them and also others. Personal auto insurance policy’s coverage will not be enough. You should also know do you need insurance to buy a used car from a dealership
Is commercial auto insurance necessary?
When we talk about commercial auto insurance in Michigan, it includes various vehicles of different sizes. Commercial vehicles include business vehicles, contractors, food trucks, for-hire livery, heavy truck, two trucks, and more. Similarly, taking personal auto insurance for these types of cars will not protect them from various risks. That’s why it’s necessary to take commercial auto insurance in order to have maximum protection. Here are some of the situations in which you will require commercial auto insurance in Michigan.
- If the vehicle is used for transporting goods or people for a fee.
- Vehicles used for providing services.
- If your work requires higher liability coverage, it’s necessary to have commercial auto insurance.
- If you operate heavy machinery, tools, or towing other vehicles.
- Vehicles that are owned by a business or partnership.
- If the vehicle is operated by employees.
Looking at the coverages, commercial auto insurance provides similar coverages to personal auto insurance like liability coverage, collision, comprehensive, medical payments, and others. However, there are some additional coverages that commercial auto insurance provides that have better protection. For example, eligibility, definitions, exclusions, and others. Some of the coverages are:
- Bodily injury liability coverage: It covers injuries or deaths due to an accident where you are at fault. It also provides legal defense in case of any legal actions.
- Property damage liability coverage: This policy covers the damages to others’ property in an accident. It could include vehicle damage, fence damage, or other property damages.
- Medical payments: It covers the medical expenses of the driver and passenger in the vehicle.
- Uninsured motorist coverage covers the injuries and, in some cases, property damage caused by an uninsured motorist, usually a hit and run case. It is also active when the person at fault does not have enough insurance to cover your damages.
- Collision coverage: This policy covers your vehicle’s damages if it hits other cars or other objects such as telephone poles, fences, etc.
- Comprehensive coverage: It pays for damages or replacement of vehicle theft, flood, fire, animal damages, and vandalism.
In many commercial auto insurance policies, it follows the ‘named drives only’ policy where only the insurance policy drivers can drive the vehicle. The state of Michigan provides a minimum insurance policy, which is compulsory. But the minimum policy amount will not be enough to cover the damages in a major accident. We help business owners get affordable commercial auto insurance and customize policies that fit their and the vehicles’ requirements as we sell insurance for your need and insurance cluster and insurance aggregator. Contact agent directory today to learn more about commercial auto insurance and how to sell insurance. If you own a business, it’s better to take commercial auto insurance. Do you need insurance to buy a car from a private seller?