There are specific types of car insurance that are ideally suited for cargo vans. Whether you own a cargo van for personal or business purposes, it is important to insure your vehicle so that you are protected against the eventuality of an auto accident. Consider the following types of car insurance when researching how to insure your cargo vans.
Commercial Lines Insurance
Professionals, businesses and commercial establishments require a specific type of insurance known as commercial lines or a commercial insurance policy. The reason for a separate type of policy from personal policies is that the underwriting standards, which apply to commercial vehicles, are different. Commercial policies often have different requirements as well. Commercial drivers may possess a special type of license and have driving records that are accident and ticket free. Discounts are often applied to large fleets.
Collision and Comprehensive Insurance
Two types of car insurance that may be recommended for cargo vans would be Collision and Comprehensive coverage. Collision coverage will pay for damage to your cargo van that is the result of a collision, following the satisfaction of the deductible. Comprehensive coverage will pay for the theft of or damage to your cargo van due to events such as fire, vandalism and inclement weather, also following the satisfaction of the deductible.
Property Damage and Bodily Injury Liability Insurance
In the United States, every state requires that a minimum amount of liability insurance be carried by the vehicle owner, so these two types of car insurance can be considered mandatory. Of course, these mandatory coverage amounts vary by state so you will have to check with the laws of your state of residence.
Property Damage Liability pays for damage that the driver of your cargo van causes to the property of other people. There is no deductible and it will not pay for damage to your cargo vans. Property Damage Liability insurance will only pay out when your driver is found to be the primary cause of the collision.
Bodily Injury Liability pays for the injuries or death that the driver of your cargo van causes to another person(s). There is no deductible and it will not pay for the injuries or death of the insured driver. Bodily Injury Liability insurance will only pay out when the driver of your cargo van is found to be the at fault party.
According to state laws, insured cargo vans are going to be insured under Commercial Lines. Property Damage and Bodily Injury Liability insurance can be considered mandatory, and Collision and Comprehensive are voluntary. Be sure to protect your cargo vans under a car insurance policy that protects you from the risk of an auto accident.