Commercial Auto Insurance in Vermont

What is Commercial Auto Insurance?

Vermont businesses that own vehicles generally need to insure the vehicles they own, yet they have different auto insurance needs than individual drivers do. Commercial auto insurance policies are specifically designed to meet the auto insurance needs of businesses in the state.

There are many different commercial auto insurance policies available, which ensures that businesses can find one that meets their particular needs. Whether insuring a single company vehicle or multiple fleets of vehicles, there’s a policy for virtually every business.

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What Coverages Are Available Through Business Auto Insurance?

Business auto insurance policies include many coverages that are similar to those found in personal auto insurance policies, such as:

  • Property Damage Liability Coverage, which frequently covers property damage caused by a company vehicle
  • Comprehensive and Collision Coverage, which frequently covers damage caused to a company vehicle
  • Bodily Injury Liability Coverage, which frequently covers injuries that people not in a company vehicle sustain
  • Personal Injury Coverage, which frequently covers injuries that people in a company vehicle sustain
  • Underinsured and Uninsured Motorist Coverage, which frequently covers injuries and damage caused by inadequately insured drivers

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What Businesses in Vermont Need a Business Auto Insurance Policy?

Most businesses in Vermont that own vehicles which are driven on public roads are required to carry a business auto insurance policy. The policy must at least meet the state’s minimum liability coverages. Businesses that fail to do this may face serious legal and/or financial consequences.

In some cases, businesses that don’t own vehicles but have employees driver vehicles for work-related purposes may want a business auto policy. Specifically, they may need hired and non-owned auto liability protection. This coverage may provide protection for non-company vehicles while they’re driven for work.

Is Business Auto Insurance Expensive?

As is the case with personal auto insurance, business auto policies’ premiums can vary dramatically. Some of the factors that insurers consider when setting premiums include the:

  • Number and type of vehicles being insured
  • Location where vehicles are parked when not being used
  • Ways vehicles are used for work
  • Distance vehicles driven within a year
  • Coverages and limits a business selects
  • Business’ recent auto insurance claims history

The best way to find out how much a business auto policy will cost a particular business is by requesting a quote, and the best way to find the lowest quote is by comparing multiple policies with an experienced independent insurance agent. When shopping for coverage with an agent, businesses can be confident that they get the most affordable policy that provides the coverages they need.

Are Commercial Auto Policies’ Premiums Tax Deductible?

In general, commercial auto policy premiums that are used exclusively to insure company vehicles are tax-deductible. Since they’re paid to insure company cars that are used for work, they normally qualify as a business expense. Policies that insure vehicles which are only partially used for work may not be fully deductible.

These are only general guidelines, though. Tax laws can change and must be applied to each particular situation individually. Therefore, businesses should consult with a tax professional before claiming any premiums as a business expense.

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How Can Businesses in Vermont Get Commercial Auto Insurance?

In order to select a robust commercial auto policy, businesses must compare multiple policies to see what one best suits their specific needs. This requires going through many policies’ coverages, terms and conditions, and it can take time.

For help with the process, businesses in Vermont should get in touch with an independent insurance agent who’s familiar with commercial auto insurance. An independent agent can get quotes from multiple insurers, and one that’s familiar with the nuances of this type of coverage will know what to look for in coverages, terms and conditions.

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