What Is Commercial Auto Insurance and How Does It Work?
Being involved in a car accident can be a traumatic experience, especially if you were injured by a commercial vehicle. In these cases, understanding commercial auto insurance becomes crucial. You need to know what commercial auto insurance is, how it functions, and the benefits it can provide individuals injured in car accidents.
What is Commercial Auto Insurance?
Commercial auto insurance is specifically designed for vehicles used for business purposes. It provides financial protection to businesses and individuals who own or operate commercial vehicles, such as trucks, vans, taxis, or delivery vehicles. This insurance coverage helps mitigate risks associated with accidents, property damage, bodily injury, and liability arising from using these vehicles for business purposes.
Coverage Offered by Commercial Auto Insurance
It typically offers several types of coverage, which may vary depending on the policy and specific business needs. Common coverage options include the following:
Liability insurance covers damages and injuries caused to others in accidents involving the insured vehicle. It does not cover the insured vehicle itself. California state law requires all commercial auto policies to have a minimum liability limit of:
- $15,000 per person
- $30,000 per accident for bodily injury
- $5,000 for property damage
This is known as 15/30/5 coverage.
Physical Damage Coverage
Physical damage protects against damage to the insured vehicle itself, whether from collisions, vandalism, or other covered perils.
Personal Injury Protection (PIP)
PIP coverage provides medical expenses, lost wages, and related costs for injuries sustained by the driver and passengers in the insured vehicle. It’s also sometimes referred to as medical payments or simply med pay.
Uninsured/Underinsured Motorist Coverage
This type of coverage safeguards against accidents caused by drivers who have insufficient or no insurance. For instance, if a commercial vehicle were involved in an accident caused by an uninsured driver, this coverage would help pay for the damages to the commercial vehicle or to its driver.
How Commercial Auto Insurance Works
To obtain commercial auto insurance, businesses or vehicle owners typically purchase a policy from an insurance provider. The policy includes details about the coverage limits, deductibles, and premiums. In the event of an accident, the policyholder or injured party should promptly report the incident to their insurance company, providing all relevant details. The insurance company will investigate the claim, evaluate the damages, and in an ideal world, provide full and fair compensation per the policy’s terms.
Unfortunately, auto insurance companies often refuse to settle auto insurance claims fairly. Therefore, anyone involved in an accident with a commercial vehicle should hire a Santa Ana car accident attorney to help them fight for the compensation they deserve. Their attorney can negotiate a full and fair settlement. Your attorney can litigate your claim if the commercial insurance company refuses to offer such a settlement.
The Importance of Commercial Auto Insurance for Car Accident Victims
Commercial auto insurance can play a crucial role for individuals injured in car accidents involving commercial vehicles. It offers financial protection by covering medical expenses, lost wages, property damage, and other related costs. Having the right coverage can ensure that accident victims receive appropriate compensation and can focus on their recovery without the added stress of dealing with extensive financial burdens. Consulting with a seasoned Santa Ana car accident attorney can help navigate the insurance claims process and maximize the benefits available under the commercial auto insurance policy.
Were You Injured by a Commercial Vehicle? Contact the Razavi Law Group Today
This provides essential protection for businesses and individuals who operate commercial vehicles. Understanding this insurance coverage is particularly important for car accident victims involving commercial vehicles. By working with an experienced Santa Ana car accident attorney, injured individuals can ensure they receive the necessary support and compensation for their injuries and losses.
If you were injured in an accident with a commercial vehicle, our experienced Santa Ana truck accident attorneys can help, contact the Razavi Law Group today to schedule a free, confidential case review. Call (949) 734-0476 or contact us online.