Commercial Auto Insurance in Maine
Allen/Freeman/McDonnell Agency
Commercial Auto Insurance
- What Is It?
- Who Needs It?
- Coverages Offered
Maine businesses that have commercial vehicles generally have to insure those vehicles with commercial auto insurance. Policies are available for cars, vans, trucks and other vehicles, and they may cover one or multiple vehicles.
Some businesses need additional coverages to meet a lease’s or loan’s requirements, and many business choose to get more protection than is mandated. An insurance agent who specializes in business auto policies can help businesses decide how much protection makes sense in their situation.
- Collision Coverage
Comprehensive Coverage
Property Damage Liability Coverage
Bodily Injury Liability
What is commercial auto insurance?
Maine businesses that have commercial vehicles generally have to insure those vehicles with commercial auto insurance. Policies are available for cars, vans, trucks and other vehicles, and they may cover one or multiple vehicles.
Commercial auto insurance is similar to personal auto insurance in many ways, but there also are some differences between then two. Most commonly, commercial policies’ coverages and limits are adjusted to meet the higher risk mitigation needs that businesses have.
What Maine businesses should have business auto insurance?
Maine businesses generally need to carry business auto insurance if they use vehicles in the course of normal operations. This can extend to both company-owned vehicles, and vehicles that are rented/borrowed.
Businesses must carry at least the state-mandated minimum coverages in most situations. Some businesses need additional coverages to meet a lease’s or loan’s requirements, and many businesses choose to get more protection than is mandated. An insurance agent who specializes in business auto policies can help businesses decide how much protection makes sense in their situation.
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What coverages are offered through business auto insurance policies?
Business auto policies offer a variety of coverages that help protect vehicles against damage and businesses against lawsuits. Some of the more widely used coverages are:
- Collision Coverage: Collisions are typically defined as accidents where a vehicle strikes another vehicle, person or object.
- Comprehensive Coverage: Normally covers insured vehicle damage that non-collision incidents cause
- Property Damage Liability Coverage: Normally covers damage to other vehicles and property
- Personal Injury Protection: Normally covers injuries to persons inside insured vehicles
- Bodily Injury Liability Coverage: Normally covers injuries to persons in other vehicles or outside of any vehicle
- Uninsured and Underinsured Motorist Coverage: Normally covers collisions caused by underinsured drivers
Collisions are typically defined as accidents involving two or more moving vehicles, although the terms of some policies may vary.
What are hired and non-owned auto policies?
Hired and non-owned policies offer specialized commercial auto insurance that primarily provides liability protection. These policies don’t usually include any collision or comprehensive coverage. Because they don’t protect the insured vehicle against damage, their rates can be much lower than those of standard commercial auto policies.
Hired and non-owned policies normally aren’t suitable when a business needs to insure owned, leased or financed vehicles. If a business relies on rented (hired) or employee (non-owned) vehicles, however, this type of policy can provide the necessary protections at reduced rates.
Some examples of businesses that generally use hired and non-owned coverage include:
- Pizzerias: Often have employees make deliveries using their personal vehicles
- Moving Companies: Sometimes rent trucks regularly or occasionally for moves
- Contractors: Sometimes rent trucks when moving large equipment or fixtures
- Multisite Stores: Sometimes have employees drive between locations for work
When a business purchases hired and non-owned coverage, the owner of the vehicle is typically responsible for insuring their vehicle against collision and comprehensive damage.
How can Maine businesses get quotes for commercial auto insurance?
For help insuring Maine-registered commercial vehicles, contact the independent insurance agents at Allen/Freeman/McDonnell Agency. Our agents are familiar with a wide variety of commercial insurance policies, including both types of commercial auto insurance policies. We’ll help you make sure your business’s vehicles are properly insured when they’re on the road.
