Understanding How Commercial Auto Insurance Works in New York

1
Pamphile InsuranceBrokerage LLC
2
Understanding How Commercial Auto Insurance Works
in New York
3

• Commercial auto insurance in NY refers to an
  insurance policy for business vehicles. The
  policy may cover cars used for business purposes,
  a fleet of taxicabs, or trucks owned or leased by
  enterprises.
• Companies that need vehicles for their operations
  must have a commercial auto insurance policy.
  This policy is usually more expensive compared to
  personal auto insurance. The mileage covered by
  business vehicles is often long, making them
  susceptible to risk compared to all the other
  cars. 
• A business automobile policy covers liabilities,
  injuries, and damages caused by an accident.
  Commercial vehicles can be used to transport
  goods or people, and in case of an accident, the
  policy will cover all the losses.

4
Components of the commercial auto insurance

• A commercial auto insurance New Yorkhas property
  and liability components. The property component
  protects the vehicles value against theft,
  crashes, and other damages. The liability
  component will defend the company when found at
  fault for causing damages, crashes, or bodily
  injuries to someone elses property or vehicle.

5
What the Business Automobile Policy Covers

• Commercial auto insurance NYoffers coverage to
  property and liability. Property coverage is for
  the value of all the vehicles owned or leased by
  the business. Liability coverage may require
  minimum policy amounts.Bottom of Form
• Commercial Auto Property
• Commercial auto property component has two
  coverages, including comprehensive physical
  damage and collision.

6
Comprehensive physical damage

• Comprehensive physical damage is a coverage that
  pays the company for the loss of a vehicle. The
  car may be stolen or damaged by falling objects,
  flooding, glass breakage, fire, vandalism, or
  theft.
• If the company car was stolen and cannot be
  tracked, the comprehensive coverage will pay for
  the vehicles value by the time it was stolen. If
  the car was damaged by a falling tree, the
  coverage would shoulder the repair costs. If it
  is irreparable, the company will be paid the full
  value of the car before the damage was caused.

7

• When calculating payouts, both the comprehensive
  and collision components consider depreciation.
  Vehicles depreciate with time, and insurance
  companies will only pay for the value of the car
  after evaluating its depreciation.
• Collision Coverage
• Collision coverage settles all the physical and
  mechanical damages to company vehicles when hit
  by another car or object. If the vehicle hit a
  wall or crashed into a truck, collision coverage
  will take care of the repair costs.
• If the repair costs exceed the vehicles value
  before the accident, the coverage will pay a
  pre-cash value of the car.

8
Commercial Auto Liability

• The liability component protects the business
  when, while driving, the owner or an employee
  causes damage or injury to another party. If they
  are at fault, the insurer will take care of the
  legal fees and the cost of the damage. 
• Some policies cover property damage and bodily
  injury as a single limit liability while others
  separate the two coverages. Your state may
  require that all company registered vehicles have
  minimum property damage and bodily injury
  liability coverage.

9
Bodily Injury Liability

• Bodily injury liability covers the company when
  the owner or an employee causes a crash and
  physically injures other people. Victims could be
  passengers in their own car, drivers or
  passengers in the other vehicles, or pedestrians.
  The liability will cover medical expenses,
  funeral costs, pain and suffering, loss of
  income, and the legal fees.

10

• In most cases, the commercial auto insurance
  NY offers separate limits per accident or per
  person, and the limits are expressed per
  person/per accident. The insurance company will
  pay a specific limit for every injured person or
  people during the crash. When choosing your
  limits of liability, you should consider the
  premiums you are willing to pay.
• Property Damage Liability
• Property damage liability covers any damaged
  caused to other peoples property while driving.
  If the company is at fault for crashing into
  someones building, fence, or another vehicle,
  the liability will shoulder the costs of repair
  up to the limit agreed upon.

11
Medical Payment Coverage

• Medical payment coverage is a no-fault coverage
  that pays for medical and funeral expenses for
  company drivers and passengers involved in an
  accident. Regardless of who caused the crash, the
  insurance company will settle the costs.  Medical
  payment comes with a lower limit of liability as
  well.
• Underinsured and Uninsured Motorist Coverage
• This type of coverage is mandatory in some
  states, but not others.

12
Uninsured Motorist Coverage

• It is against the law to drive any vehicle that
  is not insured, but some people still break this
  law. If an uninsured car crashes into a company
  vehicle and causes injuries to the company driver
  and passengers, the companys insurance provider
  will pay for the injuries.
• Uninsured vehicles may not be able to cover the
  costs, so the coverage will settle them by paying
  for the injuries of the parties involved.

13
Underinsured Motorist Coverage

• Some states may require that a company provide a
  minimum liability insurance amount per accident.
  In cases of serious accidents caused by the
  company driver, the limit may hinder the
  insurance company from paying for full medical
  expenses.
• The underinsured coverage, however, will take
  care of the expenses for the injuries, even those
  that have exceeded the limits of the insurance.

14
Who Qualifies for Commercial Auto Insurance?

• A company qualifies for commercial auto insurance
  when it owns or leases vehicles under its name.
  It is a requirement in many states that each
  registered vehicle gets minimum liability
  insurance levels.
• Therefore, 1099 contract workers, business
  owners, or employees qualify for commercial auto
  insurance for their vehicles. This is as long as
  the cars are used for business purposes such as
  transporting clients, carrying tools, or visiting
  job sites.

15

• Commercial auto insurance in New York will not
  cover employees with personal cars who help to
  run errands for the business. Companies that
  engage employees to run errands with their
  personal vehicles or those that rent or hire cars
  for business purposes should buy a hired or
  non-owned auto insurance to add to the commercial
  auto coverage.

16
Factors that Determine the Cost of Commercial
Auto Insurance

• Before getting the best commercial auto insurance
  NY quote for your business, consider the
  following factors
• The number of vehicles and drivers  Commercial
  auto insurance in NY bases their costs on the
  number of cars and drivers the company wants to
  insure. Some offer another option of insurance
  known as fleet insurance to companies with a
  fleet of vehicles and drivers to insure. Fleet
  insurance is less costly compared to commercial
  auto insurance.
• Business location  The Companys location will
  affect the price quotation. What determines the
  quote are odds on issues like the areas theft
  rates.

17

• The vehicles to be insured  The type of cars the
  company has will determine the cost of insurance.
  For example, sporty cars are expensive to insure
  than sedan vehicles.
• Drivers field records  If the company drivers
  have clean driving records, the premium will be
  cheaper.
• Antitheft and safety gear  If the vehicles are
  fitted with anti-theft and safety accessories
  such as GPS systems, alarms, or airbags, the
  costs will be lower.

18
Conclusion

• It is crucial for every business to
  purchase commercial auto insurance New York if it
  owns or leases vehicles. Before choosing your
  commercial auto insurance, you have to find out
  the type of coverage that is best suited for your
  needs.
• At Pamphile Insurance Brokerage, we provide
  commercial auto insurance that suits your needs
  and budget. Call us today for a quote.

19
Conatct Us

• Address 70 East Sunrise Highway Suite 500
  Valley Stream, New York 11581
• Phone [phone]
• Email wpamph_at_gmail.com
• Website https//wpinsurances.com/