Commercial auto insurance is very important, as it covers legal fees and other expenses if a business-owned motor vehicle is involved in an accident, whether it is for one business vehicle or fleet of trucks. We will be exploring the importance of commercial auto insurance, the requirements for commercial auto insurance in new jersey, the cost of commercial auto insurance in new jersey, and the top commercial auto insurance companies in new jersey. Commercial auto insurance is required for any motor vehicle used for work purposes.
What Is Commercial Auto Insurance?
Commercial auto insurance: this is a coverage that aids businesses that own and operate vehicles to cover the cost of property damages, vehicle repairs, medical expenses, and legal liabilities after an accident. Commercial car insurance covers the bills and every expense of a business-owned vehicle if involved in an accident.
Commercial auto insurance is required for all commercial motor vehicles in New Jersey.
Auto insurance is required by law in NJ, and business vehicles need more protection in case of accidents. With commercial auto insurance in NJ, your business will be guarded with higher coverage limits than personal policies.
Is Commercial Auto Insurance Required in New Jersey?
Any company in new jersey that uses vehicles for business purposes is required to have commercial auto insurance, whether the car is the owner’s personal vehicle or a fleet of vehicles owned by the business.
Why Is Commercial Auto Insurance in New Jersey Important?
Commercial car insurance in New Jersey is important because it protects your business and provides insurance coverage for all types of commercial vehicles. Without being covered by commercial auto insurance, one’s business could be at risk.
The insurance protects one financially and also ensures the safety of their drivers. One will be covered for any costs of damages and repairs and all medical expenses incurred in an accident.
Additionally, you could face severe penalties for not having commercial auto insurance in your new jersey.
New Jersey Commercial Auto Insurance Requirements
The state law requires that all commercial auto policies have a minimum liability limit of $15,000 for one person, $30,000 per accident for bodily injury, and $5,000 for property damage.
All cars in New Jersey are required to have auto liability insurance coverage, whether the cars are for personal or business use. New Jersey offers basic and standard car insurance policies and standard policy requirements, including a minimum of:
- $15,000: for one-person bodily injury liability
- $30,000: per accident bodily injury liability
- $5,000: for property damage liability per accident
- $15,000: for personal injury protection (PIP)
The insurance rate might be higher based on the types of vehicles you own, how they are used, and other factors that affect the rate of auto insurance, such as age, zip code, etc.
What Does Commercial Auto Insurance Cover?
Usually, in New Jersey, a vehicle’s commercial auto insurance policy is a mix of optional and required coverage. It may include all or some of the following, depending on one’s needs:
Bodily injury liability coverage: This coverage covers you from loss when you or an employee is involved in an accident that you are at fault. The coverage provides for the medical costs and any other associated costs for any claim filed against you. The compensatory amount you will receive will depend solely on your deductible and the limits set by the policy.
Property damage liability coverage: This covers the costs of repairing any property that is damaged by you or your employee while driving/operating your commercial car.
Collision coverage: This coverage covers for losses due to collisions in your covered vehicle, regardless of fault. It covers any damages a car may receive if they are involved in an accident.
Comprehensive coverage: This coverage covers all kinds of non-collision perils. For example, vehicle vandalism, car theft, or damage incurred when a tree falls on your commercial van.
Underinsured/uninsured motorist coverage: This coverage covers for your commercial vehicle should it be involved in an accident with a motorist who did not have insurance or who does not have a sufficient amount of insurance for the losses incurred; this coverage will make up the difference, up to the limits purchased.
Medical payments insurance coverage: Drivers, passengers, and other people who are injured in an accident receive their medical payments for injuries from this type of coverage.
The Cost of Commercial Auto Insurance in New Jersey?
Commercial auto insurance usually costs more than personal auto insurance. The average cost that most small business owners pay in New Jersey for commercial auto insurance is about $1,704 yearly. But this is highly dependent on the business you do, how many cars you insure, and the type of driving record you have.
How Can I Get Cheap Commercial Auto Insurance in New Jersey?
To save yourself time and money, here are some things to do to reduce the cost of commercial auto insurance:
- You have to maintain a clean driving record.
- Hire drivers with clean driving records.
- Increasing of deductible (ensure you will be able to cover it if you get into an accident)
- Find discounts
Top 10 Best Commercial Auto Insurance Companies in New Jersey
Here is the list of top best commercial auto insurance companies in new jersey:
- Geico
- New Jersey Manufacturers
- Allstate
- Progressive
- State farm
- Plymouth Rock
- Liberty Mutual
- USAA
- Travelers
- Farmers
- Nationwide
- Coverwallet
If one gets into an accident when they drive for work, they will discover that their personal auto insurance policy won’t cover for their business vehicle. For this, you need the commercial auto insurance to cover for your business vehicles in case of an accident.
Anyone who makes use of their cars for work, other than commuting, needs a commercial auto insurance in New Jersey. If you transport goods, services, or people for a fee, you need commercial auto insurance.
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