Insurance Content Navigation

• What Is Commercial Auto Insurance?
• What Does Commercial Auto Insurance Cover in Kentucky?
• What Doesn't Commercial Auto Insurance Cover in Kentucky?
• Commercial Auto Insurance Near Me
• Is Commercial Auto Insurance Mandatory in Kentucky?
• Benefits of Commercial Auto Insurance
• How a Kentucky Independent Insurance Agent Can Help You

More than 2.4 million trucks are registered in Kentucky every year. If a truck or other type of vehicle is being used for business purposes, it's required to have commercial auto insurance. Company vehicles are at risk of accidents, theft, vandalism, natural disasters, and more. Companies that are involved in an accident are at greater risk of hefty lawsuits. Fortunately, commercial auto insurance is designed to protect against these risks. 

Choosing a commercial insurance policy can be daunting, which is why working with a Kentucky independent insurance agent can ease the process. They understand Kentucky business insurance laws and regulations and can help you obtain the coverage that fits your needs. 

What Is Commercial Auto Insurance?

Commercial auto insurance is designed for Kentucky businesses that are using vehicles as part of their business operations. If a company vehicle is in an accident, there is an increased risk of a lawsuit. This insurance provides coverage should your company vehicle be damaged by a variety of events, including accidents, theft, weather damage, and other risks. A company vehicle can be anything from a catering truck to a sedan that's used by employees to deliver products. 

What Does Commercial Auto Insurance Cover in Kentucky?

When building your commercial auto insurance policy, you can mix and match coverages in order to fit your needs. A company that is located in Lake Tahoe may need more coverage against winter risks than a company that is based in Florida. 

You'll have the option to include the usual Kentucky car insurance coverages with some additions that are specialized for risks that businesses face. The options include:

• General liability: Pays for any lawsuits, medical bills, and property damage if the driver of your company vehicle is the at-fault driver.
• Collision: Pays for any damage to the company vehicle in an at-fault collision with another car or object.
• Comprehensive: Pays for damage from anything other than collision, such as natural disasters, theft, vandalism, or hitting an animal.
• Loss: Pays for losses if the vehicle is stolen.
• Owned vehicles: Covers all aspects of vehicles that are owned under the business name.
• Non-owned vehicles: Covers any vehicles that are not owned by the business but are driven by employees.
• Hired car: Covers vehicles that are temporarily hired to drive for the business.

Your Kentucky independent agent can help you determine which coverages you need. 

What Doesn't Commercial Auto Insurance Cover in Kentucky?

According to insurance expert, Jeffrey Green, commercial auto insurance will not cover any intentional damage or contents that are inside the vehicle. Contents would be covered under a general business insurance policy. Additional typical exclusions in commercial auto insurance policies include:

• Nuclear damage
• Racing damage
• Loading incidents
• Pollution

A standard commercial auto insurance policy will not include hired and non-owned vehicle coverage, this must be purchased as a rider or addition to your policy.

Commercial Auto Insurance Near Me

When shopping for commercial auto insurance, you'll realize there are many options. From nationally known carriers to local carriers, businesses have many carriers to choose from. Below is a list of the most common auto insurance writers in the United States. 

When it's time to choose an insurance carrier, you can work through this list with your Kentucky independent insurance agent to determine which company would work best for your needs. If the top insurers don't fit your company, there are many other carriers that your agent can help you get quotes from.

Is Commercial Auto Insurance Mandatory in Kentucky?

Green says that commercial auto insurance is mandatory in every state, but each state has its own mandatory limits. In Kentucky,  every commercial insurance policy must include liability insurance. The type of vehicle you're insuring and what it will be used for will determine the minimum amount of coverage you're required to have by the state. 

Kentucky’s minimum liability requirements for commercial vehicles

• Passenger vehicles with a 1 to 7 person capacity: Bodily injury liability  minimum coverage: $100,000 per person / $300,000 per accident; property damage liability minimum coverage: $50,000
• Passenger vehicles with an 8 or more person capacity: Bodily injury liability  minimum coverage: $100,000 per person / $300,000 per accident; property damage liability minimum coverage: $50,000
• Property carriers weighing up to 18,000 pounds: Bodily injury liability  minimum coverage: $100,000 per person / $300,000 per accident; property damage liability minimum coverage: $50,000
• Property carriers weighing more than 18,000 pounds: Bodily injury liability  minimum coverage: $100,000 per person / $600,000 per accident; property damage liability minimum coverage: $50,000
• Property carriers transporting less than 10,000 gallons of petroleum products: Bodily injury liability  minimum coverage: $100,000 per person / $300,000 per accident; property damage liability minimum coverage: $50,000
• All other property carriers transporting hazardous materials: Liability coverage of at least $1 million in combined single-limit coverage

Additionally, if your company vehicle will be driving across state lines, then it's subject to the U.S. Department of Transportation regulations. If you plan on driving your company vehicles out of state you'll want to work with your Kentucky independent insurance agent to make sure your vehicles meet all local and federal guidelines.

Benefits of Commercial Auto Insurance

Besides the fact that commercial auto insurance is mandatory for Kentucky business owners, having the right protection can save you from severe financial loss if you're in an accident. Whether it's expensive medical bills or hefty lawsuits, the wrong accident can lead to turmoil for a company. It also protects your business from loss of income if you rely heavily on a company vehicle and it is out of commission for repairs. 

How a Kentucky Independent Insurance Agent Can Help

Driving without insurance is illegal and leaving your business exposed to financial risks threatens your bottom line. Kentucky independent insurance agents are experts in the state and federal laws for commercial auto insurance. They understand the type of coverage you need and where to find it. They'll shop through multiple carriers and present you with affordable options to choose from. Should you need to add or remove it from your policy they can help you update your insurance. Find a local agent near you today.