Commercial vehicle insurance is a policy that protects the owner of a commercial vehicle from financial losses resulting from damage to or loss of the vehicle, injuries caused by accidents involving the vehicle, and legal liability for bodily harm.
Commercial vehicle insurance in Toronto covers any motor vehicle designed for transporting goods, passengers, or both. These vehicles include everything from company cars to various commercial and heavy-duty trucks and vans. Commercial vehicle insurance policies differ from ordinary auto insurance because they offer protection against cargo damage and injuries incurred while driving heavy-duty vehicles.
High-risk drivers are a danger to both themselves and others on the road. They may drive under the influence, speed excessively on the highway, and cause accidents that damage your vehicle. Consequently, these accidents can result in costly repairs, business downtime, and increased commercial vehicle insurance premiums.
What is covered under commercial vehicle insurance?
Commercial vehicle insurance protects your business against financial loss, bodily injury, and property damage resulting from an accident or other event related to your commercial vehicles.
The types of coverage provided by commercial vehicle insurance include:
- Bodily injury liability coverage: It provides coverage for bodily injury or death caused by an accident and a legal defense if you are sued.
- Property damage liability coverage: This pays for any damage that your commercial vehicle causes to the property of another person.
- Combined single limit (CSL): Most liability policies offer a separate bodily injury and property damage claims limit. A single combined limit will cover both property damage and bodily injury caused by an accident.
- Medical payments, no-fault, or personal injury coverage: This pays the medical bills of both the driver and passenger regardless of who is at fault.
- Uninsured motorist coverage: This type of coverage protects you in the case of an accident with an uninsured driver or if the driver at-fault has insufficient coverage to pay for damages.
- Comprehensive physical damage coverage: This pays for repairing or replacing your vehicle if it is stolen or damaged by vandalism or fire.
- Collision coverage: This covers damages to your vehicle caused by another driver or object.
What are the additional coverages considered for your commercial vehicle insurance?
An original policy endorsement that permits a person or group of people besides the insured person to be covered by insurance is known as additional coverage. You should consider the following additional coverages to your commercial vehicle insurance:
- Worker’s compensation: This is one of the most common extras because it protects you and your employees in case of injury or death while on the job.
- Specialized vehicle coverage: This can help protect against damage to a vehicle that is not part of your fleet, but that you may occasionally use for business purposes.
- Fleet insurance: This helps protect multiple vehicles at once rather than a single vehicle.
- Personal effects coverage: Protects personal items inside your vehicle in case they are stolen or damaged.
- No-deductible glass repair: Allows you to replace broken windows without paying out of pocket first.
- Gap insurance coverage: Covers any difference between what an item was worth brand new versus what it is worth now. This situation happens in cases of car theft.
- Fellow employee coverage: This takes effect if another employee causes an accident while driving on company business. This would be separate from worker’s compensation claims made by injured parties.
- Towing and labour costs coverage: Pays for towing a vehicle to a repair shop after an accident.
- Rental reimbursement coverage: This will cover renting another vehicle if yours is being repaired or damaged in an accident.
- Non-owned automobile liability coverage: Pays for damages caused by your vehicles when you don’t own them. This coverage is often used when renting cars or trucks for short periods.
- Loading and unloading liability: Covers damage caused by loading and unloading cargo onto or off your truck.
Who are considered high-risk drivers?
High-risk driving is a term used to describe those who drive in a way that puts themselves and others at risk. This can include speeding, tailgating, evading traffic rules, and other reckless behaviours that can cause an accident.
High-risk drivers include minors, reckless drivers involved in an at-fault accident, and those who have had their licenses revoked for drunk driving. Since there is a higher probability that this driver will cause an accident, resulting in higher losses for the insurer, the insurance company charges a higher premium in proportion to the risk.
How does high-risk driving affect your policy, and how do you choose the right insurance policy?
When you apply for commercial vehicle insurance, the insurance company will review your driving history and determine whether or not you qualify as a high-risk driver. This review can affect how much you pay for your coverage or if the company offers you insurance.
There are a few factors that you should consider when insuring a new driver. The first thing to consider is their years of experience. For example, younger drivers are less experienced and are more likely to get into accidents and cause damage than older and more experienced drivers.
Another critical factor is their driving record. If they have had many accidents or tickets, their premiums will also be higher. Therefore, it would be best to consider how much coverage you want for your vehicle and whether or not the insurance company will insure it under your or the driver’s name.
When shopping for high-risk insurance, make sure to compare different coverages. For example, suppose you have a history of accidents or traffic violations. In that case, no-fault insurance can help to pay for medical bills and other damages if you’re in an accident.
Take the Necessary Steps
As a high-risk driver, you must take the required steps to protect yourself from accidents. The coverages given by your insurance company play a significant role in determining how much damage you have to pay out of pocket.
Remember, the cost of high-risk insurance policies varies from company to company, so business owners must research the companies offering such policies before deciding on which one to choose.
Author:
Jessica Coates is a blogger in Toronto. She graduated with honors from the University of British Columbia with a dual degree in Business Administration and Creative Writing. Jessica Coates is a community manager for small businesses across Canada. When not working, she leisurely studies economics, history, law and business solutions.