The same is true of auto insurance, and let’s face it, driving can be risky. According to the National Highway Traffic Safety Administration (NHTSA), in 2020, there were 5.24 million police-reported crashes in the U.S., which caused 2.28 million injuries and 38,824 fatalities (a 6.8% increase over 2019).
A vehicle used for commercial purposes is considered a higher risk because it may be driven more often or by more than one driver. Therefore, if you own a vehicle used for commercial purposes – making deliveries, visiting customers, etc. – your personal auto insurance may not cover damages caused when you or an employee uses your vehicle for commercial purposes.
A personal auto insurance policy covers property damage, bodily injuries, and legal expenses. While some personal auto insurance policies include limited coverage for business use, this type of policy is typically limited to accidents that occur during personal use, such as commuting to and from work and other travel unrelated to your job/business. In addition, a personal auto insurance policy typically insures the owner and one or two immediate family members only.
A commercial auto insurance policy covers vehicles owned by a business. It covers vehicles used to drive customers or employees, perform a service you’ve been paid for, transport goods, and other business uses. Like personal auto insurance, Commercial Auto Insurance covers property damage, bodily injuries, and legal expenses. It also typically includes additional insureds, such as employees, and covers different types of vehicles, larger claims, and more complicated legal issues.
HNOA insurance provides coverage for vehicles your business does NOT own but uses for commercial purposes, such as running business errands, picking up supplies, and visiting customers. This includes your employees’ vehicles used for business purposes and vehicles you rent or lease to use for business purposes. HNOA insurance can be purchased as a rider to your general liability insurance or as a standalone policy. It’s important to note that HNOA does NOT cover damage to your own property – only third-party liability costs.
Studies show that 98% of auto accidents are caused by human error. The following are the top six human driver errors:
The fewer accidents you or your employees are involved in, the fewer insurance claims and the lower your auto insurance costs. Here are five steps to minimize the risk of an auto accident:
The best way to lower the cost of your insurance is to work with one of the experienced agents at American Insuring Group.
We will help determine the best type of insurance for your needs and then – as independent agents – check with multiple insurance companies to ensure that you pay the lowest premium for that insurance.
Call us today at (800) 947-1270 or (610) 775-3848, or connect with us online.