If you operate a business that requires the use of vehicles, you need commercial auto insurance. This will not only protect your business from potential liabilities, but it’s also required by law. Ontario commercial auto insurance covers a range of vehicles, including cars, trucks, buses, and trailers.
This insurance is specifically designed to cover vehicles that are used for business purposes, such as transporting goods or passengers, or any other commercial use.
Here at Buckler Insurance, we will discuss the different types of Ontario commercial auto insurance, what coverage includes, and your requirements. Read on to find out more!
Types of Commercial Auto Insurance
Ontario commercial auto insurance policies can be customized to meet the specific needs of your business.
The two primary types of commercial auto insurance policies are commercial fleet insurance and commercial vehicle insurance. Let’s take a look at the coverage options you can find at Buckler Insurance!
Commercial Fleet Insurance
Commercial fleet insurance is designed for businesses that own a fleet of vehicles. This type of policy provides coverage for all vehicles in the fleet, with the option to add or remove vehicles as needed. This policy is ideal for businesses that operate a large number of vehicles, such as courier companies, trucking companies, and delivery services.
Commercial Vehicle Insurance
Commercial vehicle insurance is designed for businesses that own just one or a few vehicles. This policy is ideal for businesses that use vehicles for specific purposes, such as construction companies, landscapers, and electricians. It’s important to note that even if you just have one vehicle for work use, you’ll need insurance for it.
What Does Basic Commercial Auto Insurance Cover?
Ontario requires all vehicles to have basic auto insurance coverage. This coverage includes third-party liability, accident benefits, and uninsured auto coverage. Let’s take a closer look at each of these coverages.
Third-Party Liability
Third-party liability coverage protects you if you are found to be responsible for an accident that causes injury or property damage to another person. This coverage will cover the costs associated with the damages and any legal fees that may arise from a lawsuit.
Accident Benefits
Accident benefits coverage provides financial support if you or your passengers are injured in an accident. This coverage includes medical expenses, rehabilitation expenses, and income replacement if you are unable to work due to your injuries.
Uninsured Auto
Uninsured auto coverage provides protection if you are involved in an accident with an uninsured driver. This coverage will cover the damages to your vehicle and any injuries you or your passengers sustain.
What Extras Can You Add to Commercial Auto Insurance?
In addition to the basic coverage, there are several extras you can add to your Ontario commercial auto insurance policy to provide additional protection for your business.
Collision
Collision coverage provides protection for damages to your vehicle caused by a collision with another vehicle or object, regardless of who is at fault. This coverage is essential for businesses that rely on their vehicles to operate.
Comprehensive
Comprehensive coverage provides protection for damages to your vehicle that are not caused by a collision, such as theft, fire, or vandalism. This can be especially important for businesses that store their vehicles overnight in areas that may be prone to theft or vandalism.
Goods and products
Goods and products coverage provides protection for the goods or products being transported in your vehicle. You’ll need this if you are transporting high-value items, such as electronics.
Reefer breakdown
Reefer breakdown coverage provides protection for the refrigeration unit in your vehicle. This coverage will cover the costs associated with repairs or replacement of the refrigeration unit if it breaks down.
Passengers
Passenger coverage provides protection for the passengers in your vehicle. This coverage will cover the costs associated with injuries sustained by passengers in the event of an accident.
What are the Requirements of Commercial Auto Insurance?
In Ontario, all businesses that use vehicles for commercial purposes are required by law to have commercial auto insurance. The minimum coverage required by law includes third-party liability, accident benefits, and uninsured auto coverage.
The minimum amount of third-party liability coverage required by law is $200,000. However, it is recommended that businesses carry a higher amount of coverage, as the costs associated with an accident can quickly exceed this amount.
How to Reduce Commercial Auto Insurance Costs
Commercial auto insurance can be a significant expense for businesses, but there are several ways to reduce the costs of your policy.
One way to reduce costs is to increase your deductible. The deductible is the amount you must pay out of pocket before your insurance coverage kicks in. Increasing your deductible can lower your premium, but it also means you will be responsible for a higher amount of costs in the event of an accident.
Another way to reduce costs is to shop around for the best rates. Insurance premiums can vary widely among providers, so it’s essential to get quotes from multiple insurers to find the best deal.
You can also take steps to reduce the risks associated with your business’s use of vehicles. This can include implementing driver training programs, conducting regular vehicle maintenance and inspections, and installing safety features such as backup cameras and blind-spot detection systems.
Final Thoughts
Ontario commercial auto insurance is essential for businesses that use vehicles for commercial purposes. Understanding the different types of coverage available can be important in ensuring you’re properly covered should an accident happen.
If you’re interested in getting commercial auto insurance, then contact Buckler Insurance today! We’ll help you every step of the way to get the perfect policy for your business.
