| By :
Nick Messe
Car insurance is a legal requirement and a personal necessity. It protects the driver from medical, legal, and financial burdens that arise from various accidents. Policies can be tailored to suit every person's specific needs. Coverage extends beyond personal auto use to all types of commercial use. Commercial vehicle insurance is a very important part of running and protecting a business. All types of companies use vehicles to conduct their business. The most obvious are those that transport people or cargo. Taxis, shuttles and limousine services make their living getting people around town. These companies are trusted with the lives of several people on a daily basis. The increased distance and drive time, along with the number of passengers, result in more opportunity for accidents to occur. A commercial vehicle policy accommodates the higher risk with broader coverages and protections. This type of coverage also supports business that offer their employees company cars. For example, pharmaceutical sales representatives are required to visit several medical offices daily. They not only transport themselves, but also carry medical supplies. Both the person and the supplies are important and should be protected by the responsible company. Businesses that transport goods are also required to carry commercial vehicle insurance. Whether delivering flowers to the local hospital or large shipments across the country, all of these companies need to fully insure the vehicle and value of its cargo. The insurance can protect the driver and vehicle from injury or damage. It also can protect the company from the financial burden of profits lost due to an accident. This protection is even more important for smaller businesses. A major profit loss brought on by an accident could crush a company that is not established or large enough to make up for the loss of income. Commercial vehicle insurance is required by law. Companies that are caught not having proper coverage may be placed on probation and be forced to show proof of the required insurance. SR 22 is a form many states demand in these circumstances. A company will be expected to obtain this proof of coverage from their insurance company to be kept on file with their state's motor vehicle agency. This probationary period usually runs for three years and can come with additional fines. The increased risk to property and person does not allow for weak insurance coverage and is not tolerated by state or local authorities. Commercial auto insurance premiums vary based on location, use, vehicle type, and size of the fleet. Local deliveries from a bakery will not require the same coverage as a large trailer carrying livestock across state lines. An insurance company that offers all types of commercial products will be able to tailor a policy to the specific needs of a company, creating complete and low cost insurance. Auto insurance is an active way to protect yourself from the serious financial burdens brought on by accidents. Commercial vehicles have a higher risk of being involved in accidents which can result in a larger financial impact. The damage caused to one shipment could crush a business. Commercial vehicle insurance covers damages to person and property, allowing business to carry on.
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