All companies must purchase insurance coverage plans to protect them and the commercial vehicles (cars, trucks, and vans) that are a part of the daily business operations. No matter whether it is a large fleet or a small business with only a few vehicles, California state laws require that they all be insured properly. So if you own and operate a business that uses commercial trucks, it is important that you purchase the proper coverage in order to drive them legally. What is Commercial Truck Insurance Coverage? Commercial truck insurance plans are specific policies that focus on liability and physical damage coverages based on those amounts, circumstances, and usage that a standard personal auto insurance policy will not cover. Although this seems fairly obvious, it is important to know the primary difference between a commercial vehicle policy and standard policies. This type of insurance covers a wide range of vehicles, most importantly trucks. Since commercial truck insurance coverage plans differ from personal insurance plans, the policies also differ considerably in the way they are written. Insurance coverage is required for business and personal vehicles alike. Insurance companies take on a considerable amount of liability and risk whenever they insure anyone. So that liability and risk depends on a number of different factors. Understanding The Basics Unlike personal (non-commercial) vehicle insurance, commercial truck insurance coverage plans were designed and developed for businesses that use their vehicles in their daily operations and higher drivers to operate them. The insurance carrier assumes that these individuals will drive the company’s vehicles so the amount of liability coverage is usually much higher than what is provided under a personal auto insurance policy. Another key factor according to the American Association of Motor Vehicle Administrators is that a commercial truck is not registered in the same fashion that a regular vehicle is. Therefore, you will need to provide different information regarding commercial trucks in order to get an insurance quote. For instance, you may employ as many as 100 drivers in your company, all of whom must be insured under your truck insurance policy. As with personal vehicles, the insurance company may not always be able to match the vehicle identification numbers (VIN’s) with what the state database has on file. The other key difference is that there could be numerous drivers working for a single company whereas a personal policy will only cover family individuals who drive their vehicles. As a result of having more drivers to insure, the premium rates on commercial coverage is considerably higher. Types of Truck Insurance Modesto Coverage The two primary types of truck insurance coverage that you need to be concerned with initially are liability and physical damage. If one of your drivers is involved in an accident and is the at-fault driver, liability insurance covers the following damages: • another person’s property • bodily injury to another person • other vehicles Physical damage insurance coverage protects you against collision and theft while your trucks are being driven for business purposes. In addition to liability and physical damage coverages, you can add other types of coverage such as: • bodily injury liability • collision • comprehensive physical damage • CSL or combined single limit • medical payments, no-fault, or personal injury • property damage liability • uninsured/underinsured motorist So it is important that you research several commercial truck insurance coverage plans with different companies to find the most adequate yet affordable policy. This is vital to insuring your company’s trucks. As with personal vehicle coverage plans, commercial truck insurance coverage can decrease or increase based on specific positive or negative factors. As an example, companies that are more established and have been in business longer will usually be afforded a lower monthly premium rate. Conversely, the more claims that a company has filed because of accidents and damages, the more they will have to pay for their premiums. By hiring individuals that have a clean commercial driving record and then training them properly, you will have a better chance of getting better premium rates when you insure them. You can research different companies online that offer commercial truck insurance coverage plans or if you prefer, you can discuss your needs in person with different insurance company agents or representatives.