A Guide to Commercial Auto Insurance in Central New York

Juggling the demands of running a business in Central New York is no easy feat. Between managing employees, clients, and daily operations, ensuring your company has the right protection on the road can often fall to the wayside.

But what happens if one of your vehicles is involved in an accident? What if an employee, who is driving her car to the bank on your behalf, causes an accident along the way? The consequences can be significant, impacting not only your finances but also your reputation.

At Horan, we’ve helped countless businesses in Central New York navigate the complexities of commercial auto insurance. We understand the unique challenges you face and offer comprehensive policies tailored to your unique business.

This article serves as your guide to understanding commercial auto insurance, its legal requirements, and the various coverages available. We’ll also equip you with valuable tips on saving money and managing your policy effectively.

Let’s navigate the road to comprehensive protection together. We’re here to ensure your business stays on the move, no matter what the road throws your way.

What is Commercial Auto Insurance and Why Do You Need It?

Running a business in Central New York is exciting, but it also comes with responsibilities. One crucial responsibility is ensuring you have the right policy protection on the road.

If you own or operate a business in Central New York that uses vehicles for work purposes, you need commercial auto insurance. 

Your personal car insurance isn’t equipped to handle the unique risks associated with business vehicles. Commercial auto insurance is a type of coverage that protects your business from the financial risks of accidents, injuries, and damages involving your vehicles and drivers. 

It also covers your legal liability if you or your employees are sued for causing harm to others while driving for work.

Commercial auto insurance is different from personal auto insurance, which only covers your personal vehicles and driving activities. Personal auto insurance may not cover you if you use your vehicle for business purposes, such as delivering goods, transporting clients, or hauling equipment. 

In fact, using your personal vehicle for work without proper commercial coverage could void your personal policy and leave you exposed to lawsuits and claims.

Commercial auto insurance is not only a smart way to protect your business, but also a legal requirement in New York State. 

According to the New York State Department of Motor Vehicles, any vehicle that is used for commercial or business purposes must have commercial auto insurance, regardless of the vehicle type, size, or ownership. 

This includes cars, trucks, vans, buses, taxis, limousines, and trailers. The minimum liability limits for commercial auto insurance in New York are:

• $25,000 for bodily injury per person
• $50,000 for bodily injury per accident
• $10,000 for property damage per accident
• $50,000 for death per person
• $100,000 for death per accident

These are the minimum amounts of coverage you need to legally operate your business vehicles in New York. However, depending on your business type, industry, and risk level, you may need higher limits or additional coverages to adequately protect your business. 

For example, if you transport hazardous materials, carry passengers, or operate in multiple states, you may need more comprehensive coverage than the minimum requirements.

What Does Commercial Auto Insurance Cover in New York State?

Commercial auto insurance covers a range of scenarios and situations that may arise when you or your employees use vehicles for business purposes in New York State. Some of the common coverages that are included or available for commercial auto insurance are:

• Bodily Injury Liability: This covers the medical expenses, lost wages, and pain and suffering of the other party if you or your employees cause an accident that injures someone else while driving for work. It also covers your legal defense costs if you are sued for the accident. Learn more about bodily injury liability.
• Property Damage Liability: This covers the repair or replacement costs of the other party’s vehicle or property if you or your employees cause an accident that damages someone else’s property while driving for work. It also covers your legal defense costs if you are sued for the accident. Learn more about property damage liability.
• Personal Injury Protection (PIP): This covers the medical expenses, lost wages, and funeral costs of you and your passengers if you are injured in an accident, regardless of who is at fault. It also covers pedestrians and cyclists who are injured by your vehicle. PIP is mandatory in New York State and has a minimum limit of $50,000 per person per accident. Learn more about personal injury protection.
• Uninsured/Underinsured Motorist (UM/UIM): This provides coverage for you and your passengers' medical expenses and long-term pain and suffering that exceed your personal injury protection limits, if you are injured in an accident caused by a driver who is uninsured or underinsured. UM/UIM is mandatory in New York State and has the same limits as your bodily injury liability coverage. Learn more about uninsured/underinsured motorist coverage.
• Collision: This covers the repair or potential replacement costs of your vehicle if it is damaged in an accident with another vehicle or object, regardless of who is at fault. You can choose your deductible amount, which is the amount you pay out of pocket before the insurance pays the rest. Collision coverage is optional in New York State, but it may be required by your lender or lessor if you finance or lease your vehicle.
• Comprehensive: This covers the repair or potential replacement costs of your vehicle if it is damaged by something other than a collision, such as fire, theft, vandalism, or weather. You can choose your deductible amount, which is the amount you pay out of pocket before the insurance pays the rest. Comprehensive coverage is optional in New York State, but it may be required by your lender or lessor if you finance or lease your vehicle. Learn the difference between comp and collision coverage.

These are some of the basic coverages that are offered or required for commercial auto insurance in New York State. 

What are the Optional Coverages for Commercial Auto Insurance in Central New York?

Commercial auto insurance policies in Central New York offer some optional coverages you can decide whether or not you want to add to your policy. These optional coverages can provide you with extra protection and benefits for your business vehicles and drivers. 

However, they may also increase your premium and may not be available from every carrier. Here are some of the optional coverages you may want to consider for your commercial auto insurance policy:

Hired and Non-Owned Auto Liability

This coverage protects your business from the liability of using vehicles that are not owned by your business, such as rented, leased, or borrowed vehicles (hired), or personal vehicles of your employees or partners (non-owned). 

For example, if your employee uses their own car to run an errand for your business and causes an accident, or if you rent a van to pick up a large item for your business and damage someone else’s property, this coverage offers protection for the liability of your business for the injuries or damages caused by these vehicles. 

This coverage will extend the same level of liability that you have on your primary policy to these vehicles while they are being used for your business purposes. 

Hired and non-owned auto liability coverage is optional, but it is recommended if you frequently use non-owned or hired vehicles for your business.

Towing and Labor

This coverage pays for the cost of towing and roadside assistance if your vehicle breaks down or is disabled on the road. 

For example, if your truck has a flat tire, a dead battery, or a mechanical problem, this coverage will cover the cost of calling a tow truck, changing a tire, jump-starting a battery, or unlocking a door. 

Towing and labor coverage is optional, but it is useful if you have large or heavy vehicles that are expensive or difficult to tow. However, not every carrier may offer this coverage, and you may have to request it specifically if you want it on your policy.

Rental Reimbursement

This coverage pays for the cost of renting a temporary vehicle while your vehicle is being repaired or replaced after a covered loss. 

For example, if your work van is damaged in a collision and needs repairs, this coverage will cover the cost of renting a similar van to keep your business operations running smoothly. However, it's important to note that rental reimbursement typically doesn’t cover larger commercial vehicles like heavy-duty and semi-trucks or diesel tractors.

Rental reimbursement coverage is optional, but it is helpful if you rely on your vehicles for your business operations and cannot afford to lose them for a long time. However, not every carrier may offer this coverage, and you may have to request it specifically if you want it on your policy.

These are some of the optional coverages that you may want to add to your commercial auto insurance policy in Central New York. However, depending on your business type, industry, and risk level, you may need or want other optional coverages as well. 

You can consult with a licensed and experienced insurance agent who specializes in commercial auto insurance to help you find the best policy and price for your business. They can also help you compare and choose the optional coverages that are suitable and available for your business.

What Information Do You Need to Shop for a Commercial Auto Insurance Policy?

When you’re looking for a commercial auto insurance policy for your business in Central New York, you need to have some information ready to get accurate and competitive quotes from different insurance companies.

This information will help the insurance companies to rate your policy and determine if you meet their underwriting guidelines. Some of the information that you need to have on hand are:

• Driver information: You need to provide the names, addresses, dates of birth, and driver’s license numbers of all the people who you want to list as drivers on your policy. This includes yourself, your employees, your partners, or anyone else who will use your vehicles for business purposes. The insurance companies will check the driving records and histories of your drivers and see if they have any accidents, violations, suspensions, or revocations that could affect your coverage and costs.
• Vehicle information: You need to provide the make, model, year, VIN, and mileage of all the vehicles that you own or operate for your business. You also need to provide the purchase price, and any enhancements or modifications that you have done to the vehicles that could increase their value or performance. The insurance companies will use this information to determine the physical damage coverage and limits that you need for your vehicles.
• Radius of operations: You need to provide the geographic area and distance that you and your drivers travel with your vehicles for business purposes. This includes the states, counties, cities, and zip codes that you operate in, as well as the average miles that you drive per year, per vehicle, or per trip. The insurance companies will use this information to assess the risk and exposure of your vehicles and drivers on the road. The wider your radius of operations, the higher your premium may be, or the harder it may be to find a policy that covers you.
• Type of cargo: You need to provide the type and value of the goods or materials that you transport or haul with your vehicles for business purposes. This includes the weight, volume, nature, and destination of your cargo, as well as the frequency and duration of your trips. The insurance companies will use this information to determine the liability and cargo coverage and limits that you need for your vehicles. Some types of cargo, such as hazardous materials, pollutants, or environmental risks, may require special or additional coverage, or may not be covered at all by some insurance companies.

These are some of the basic information that you need to have on hand when you shop for a commercial auto insurance policy in Central New York. However, depending on your business type, industry, and risk level, you may need to provide more or less information to the insurance companies. 

You can consult with a licensed and experienced insurance agent who specializes in commercial auto insurance to help you prepare and gather the information that you need for your policy. They can also help you compare and choose the best policy and price for your business.

How to Save Money on Commercial Auto Insurance in Central New York

Commercial auto insurance can be a significant expense for your business in Central New York, especially if you have a large fleet of vehicles or high-risk drivers. However, there are some ways that you can reduce your premium and get the best value for your policy. 

Here are some tips on how to save money on commercial auto insurance in Central New York:

• Bundle your policies: One of the easiest and most effective ways to save money on commercial auto insurance is to bundle your policies with the same insurance company. If you have other types of business insurance, such as general liability, business property, workers compensation, or umbrella, you can combine them with your commercial auto insurance and get a multi-policy discount. This will not only lower your premium, but also simplify your billing and claim process.
• Take a defensive driver course: Another way to save money on commercial auto insurance is to take a defensive driver course and provide proof of completion to your insurance company. A defensive driver course is a training program that teaches you how to drive safely and avoid accidents and violations on the road. Many insurance companies offer a defensive driver discount for drivers who complete such a course, as it shows that they are committed to improving their driving skills and reducing their risk.
• Pay in full: A third way to save money on commercial auto insurance is to pay your premium in full rather than in installments. Some insurance companies offer a pay-in-full discount for customers who pay their annual or semi-annual premium in one lump sum, as it reduces their administrative and collection costs. Paying in full also helps you avoid any late fees or interest charges that may apply if you miss a payment or default on your policy.

These are a few common ways that you can save money on commercial auto insurance in Central New York. However, depending on your business type, industry, and risk level, you may qualify for other discounts or benefits from different insurance carriers. 

Be sure to consult with a licensed and experienced insurance agent who specializes in commercial auto insurance to help you find the best policy and price for your business. They can also help you review and update your policy regularly and make sure that you get the most out of your coverage.

How to Manage Your Commercial Auto Insurance Policy in Central New York

Once you have purchased a commercial auto insurance policy for your business in Central New York, you need to manage it properly and keep it updated according to your business needs and changes. 

This will help you maintain your coverage and avoid any gaps or issues with your policy. Here are some tips on how to manage your commercial auto insurance policy in Central New York:

Ask About the Turnaround Time and Servicing Capacity of Your Carrier or Agency

If you are someone who frequently changes your drivers or vehicles, you need to ask your carrier or agency about their turnaround time and servicing capacity for handling such changes. You don’t want to wait too long or face any difficulties when you need to add, remove, or update your drivers or vehicles on your policy. 

You also want to find out their processes and procedures for making such changes and what information and documents they require from you. You should choose a carrier or agency that can provide you with fast and efficient service and support for your policy.

Keep Track of Your Drivers and Vehicles and Report Any Changes to Your Carrier or Agency

You need to keep track of your drivers and vehicles and report any changes to your carrier or agency as soon as possible. This includes adding or removing drivers or vehicles, changing the type or usage of your vehicles, or updating the information or status of your drivers or vehicles. 

You should also review your drivers’ driving records and histories regularly and make sure they comply with the requirements and guidelines of your policy. 

By reporting and updating your drivers and vehicles on your policy, you can ensure that you have the correct and adequate coverage and avoid any penalties or problems with your policy.

Find Out How Your Trailers or Other Towed Items Are Covered and Add Them to Your Policy if Needed

If you’re towing anything with your vehicles, such as trailers, utility trailers, open or enclosed, etc., you need to find out how they are covered by your policy and add them to your policy if needed. 

You should provide the information and details of your trailers or other towed items to your carrier or agency, such as the VIN, length, year, make, model, and whether they are open or enclosed. You should also provide the value and type of the cargo you’re hauling or transporting with your trailers or other towed items. 

Your carrier or agency will use this information to determine the physical damage and liability coverage and limits that you need for your trailers or other towed items. If you don’t add your trailers or other towed items to your policy, they may not be covered in case of an accident or a loss. 

If the repair or replacement costs of your trailers or other towed items are vital to you, add them to your policy. Regardless of repair or replacement costs, it’s usually a good practice to do so.

These are some of the tips on how to manage your commercial auto insurance policy in Central New York. However, depending on your business type, industry, and risk level, you may need to do more or less to manage your policy. 

You can consult with a licensed and experienced insurance agent who specializes in commercial auto insurance to help you manage your policy to get the most out of your coverage.

Know Who Your Drivers Are Before Adding Them to Your Commercial Auto Policy

One of the most important factors that affects your commercial auto insurance policy is the quality and safety of your drivers. Your drivers represent your business on the road, and their driving records and behaviors can have a significant impact on your coverage and costs. 

You’re only as good as your worst driver, and one bad driver can jeopardize your entire policy.

That’s why you need to know who your drivers are and what their driving histories are before you hire them or assign them to your vehicles. You don’t want to find out that one of your drivers has a DUI, a suspended license, or multiple violations after you’ve already hired them or insured them. 

This could cause you a lot of trouble and expense, as some insurance companies may refuse to cover such drivers or charge you much higher rates.

To avoid this situation, you should request your potential or existing drivers to obtain a copy of their driving abstract from the Department of Motor Vehicles (DMV) and provide it to you. 

A driving abstract is a document that shows the driver’s personal information, license status, and driving history, including any accidents, violations, suspensions, or revocations. You can use this document to verify the driver’s identity, eligibility, and suitability for your business.

You can ask your drivers to order their driving abstract online from the DMV website and pay a small fee (usually around $7) for it. They can then print it out or email it to you. You should do this before you offer them a position or add them to your policy, as this will give you time to review their driving abstract and decide whether to hire them or not. 

You can also do this periodically for your existing drivers to make sure they maintain a good driving record and report any changes to you.

By knowing who your drivers are and what their driving abstracts are, you can almost guarantee that you only hire and insure safe and qualified drivers for your business. This will help you reduce the risk of accidents, claims, and lawsuits involving your vehicles and drivers. 

It will also help you lower your commercial auto insurance premium and get the best coverage and value for your policy.

Keep Your Business Moving with the Right Commercial Auto Coverage

Running a business in Central New York is demanding, with countless details vying for your attention. Securing the right commercial auto insurance can easily get lost in the shuffle, but neglecting it can have significant consequences. An accident on the road can quickly become a financial and operational roadblock, derailing your success.

This guide has equipped you with the knowledge to navigate the world of commercial auto insurance, understand legal requirements, and explore various coverages. We've also provided valuable tips on saving money and managing your policy effectively.

By taking control of your commercial auto insurance, you can ensure your business is protected against unforeseen events, allowing you to focus on what truly matters: driving your company forward. Don’t let a preventable setback stall your progress.

We understand the unique challenges faced by Central New York businesses, and we're here to help. 

Click the Get a Quote button below to connect with one of our experienced agents and secure the commercial auto coverage that's tailored to your specific needs.