Business auto policies vary from state to state, according to state motor vehicle and insurance laws. They generally cover several risk exposures, including:
Tip: Basic state-mandated coverage limits are seldom adequate to cover serious claims. Consider optional upgrades whenever available.
- Liability, insuring against civil liability for property damage and bodily injury. This coverage is mandatory for all vehicles.
- Personal injury (no-fault) protection, covering medical expenses, wage loss and necessary replacement services (such as housekeeping) for the insured driver and/or passengers when injured in an auto accident, without regard to fault.
- Uninsured and underinsured motorists' insurance, covering civil liability of another driver who has no insurance or whose limits are inadequate to cover bodily injury or property damage to those who are insured.
- Physical damage, protecting against damage to the policyholder's vehicle through collision (collision coverage) or other causes, such as vandalism or falling objects (comprehensive coverage).
Except for liability coverage, these are elective, subject to state motor vehicle requirements. Basic coverage amounts vary by insurer and by state, with the option of supplemental limits normally available.