Common Commercial Auto Insurance Questions 

Why get commercial auto insurance?

Commercial auto insurance offers special coverage for the unique challenges that a business that owns vehicles or uses employee drivers might face when problems occur. The policy will help insured businesses repair or replace vehicles, cover liability claims and pay a variety of other expenses related to unexpected issues. Most personal auto policies will not cover commercial vehicles.

What counts as a commercial vehicle in Kentucky?

Commercial vehicles come in many shapes and sizes. They might include: 

Single vehicles or a fleet owned by a business. 

A vehicle owned by an employee that they use in the regular course of business. 

Company-owned vehicles driven during non-working hours. 

Vehicles hired or rented for business purposes. 

Rideshare vehicles, taxis or shuttle buses. 

Certain vehicles owned and used privately, but that qualify as commercial due to weight. 

If you use a car significantly for business, however, then you likely need a policy. There is no specific make or model that is or is not a commercial vehicle. You might need coverage on anything from a single company car to a fleet of delivery vans or 18-wheelers.

Who does commercial auto insurance cover in Kentucky?

Commercial auto policies can cover both the business that owns the vehicle and employees who drive on behalf of the business. In some cases, you must list an employee driver on the policy if they are going to drive a company vehicle.

What is covered under a commercial auto insurance policy?

Commercial auto policies offer a variety of liability and physical damage coverage options. 

Liability Insurance: Coverage can pay when the insured driver is at fault for a wreck that harms others who were not passengers in the insured vehicle. It can pay for third-party bodily injuries and property damage and can also apply to unique risks like hazardous materials spills. 

Collision Insurance: Policies cover damage to an insured vehicle that it sustained in a wreck. 

Comprehensive Insurance: If a commercial vehicle gets damaged through hazards like theft, vandalism, severe weather, fire or animal strikes, then this coverage will pay. 

Non-Owned/Hired Auto Liability Insurance: When an employee driver uses their personal car for business, this coverage can apply the business’s liability coverage to that driver. 

Medical Payments Coverage: If a company driver or passengers get hurt in a wreck, then this coverage can pay for their medical costs. 

Uninsured Motorist Coverage: A third party might be at fault for damage to one of your commercial vehicles. However, if that party does not have liability insurance, then your own policy can assist you with covering your damage costs. 

Most commercial vehicle owners are required by both state and federal law to have certain coverage. However, these requirements will vary. Heavyweight vehicles and those that transport cargo or hazardous substances face stricter rules. Your agent will work with you to determine which coverage you must have and which is optional.

How much does commercial auto insurance cost in Kentucky?

The cost of your policy will vary based on multiple factors, like: 

How many vehicles and drivers you insure 

The coverage limits you choose 

Your chosen deductibles 

The value of your vehicle(s) 

Your insurance claims history 

The types of cargo you carry 

Your agent will work with you to choose the policy that provides just the right amount of coverage, without overburdening your accounts with costs of coverage that you don’t need. 

Please note, if you haul equipment or transport cargo or deliveries, then you will likely need to buy inland marine insurance. This is separate coverage designed to insure items in your care in the vehicle.

How does commercial auto coverage work for Uber?

If you drive for companies like Uber or Lyft, then many major insurers now offer rideshare insurance, which works like commercial auto insurance, but that doesn’t burden you with some of the other coverage you don’t need. Your policy will kick in during times that you drive for work, rather than privately. Some people buy rideshare coverage as independent policies, while others can buy it as an endorsement to their personal policy. This is often better coverage than the supplements offered by rideshare companies.