Commercial Auto Collision Coverage in Colorado

Your personal auto insurance policy may not cover vehicles you use for business purposes. If your company owns vehicles, you must purchase commercial auto insurance.

Talk with the agents at Insurance Unlimited in Lakewood, Colorado, to learn about your commercial auto insurance options and determine whether commercial auto collision coverage may help protect your company’s investment in its vehicles.  

What Is Commercial Auto Collision Coverage?

Your commercial auto insurance policy works like your personal auto insurance policy. You can purchase collision coverage for any vehicle, including a car, van, truck or trailer that you plan to drive on public roads for business purposes.

Commercial auto collision coverage helps pay to repair or replace your vehicle after a damage-causing covered incident. Your collision coverage policy kicks in if you or one of your employees is involved in a collision with another vehicle, animal or stationary object or if the vehicle rolls.

Your agent will talk with you about what types of vehicles your company owns, whether you use other vehicles primarily for business purposes, and who drives the company vehicles.

Is Commercial Auto Collision Coverage Required?

Your state requires you to purchase specific minimum amounts of auto liability coverage, but collision coverage isn’t required by law. If the company operates commercial motor vehicles regulated by the Federal Motor Carrier Safety Administration, check to see what types of insurance they require in addition to the commercial auto insurance.

If you lease or finance your vehicles, your lienholder requires that you carry full coverage insurance, including collision coverage, to help protect their stake in the vehicles.

Your company isn’t required to carry collision insurance on vehicles it owns outright. Collision coverage may not make sense depending on the car’s age, mileage, and condition.

Vehicles depreciate in value over time, so while collision insurance may provide much-needed financial protection for newer vehicles, it may not be suitable for every car. Fortunately, you can insure each vehicle separately for various levels of coverage. Your agent will talk with you about the value of your company vehicles and help you determine if collision coverage is necessary.

How Does Commercial Auto Collision Coverage Work?

When you make a claim, the insurance company typically uses the vehicle’s pre-accident actual cash value to determine how much money they’ll pay to repair it or declare it a total loss.

If you decide not to place collision coverage on your vehicles, make sure your company can easily replace a damaged vehicle. You may have to pay to have your car repaired or replaced out-of-pocket without collision coverage.

Get the Commercial Auto Insurance You Need

If you drive for business purposes or your company owns vehicles, you may be required to purchase certain types of commercial auto insurance. The agents at Insurance Unlimited can help you decide whether to include collision coverage with your commercial auto policy. Contact us today to get a personalized quote.