Having the right commercial auto insurance is essential if your business relies on vehicles for deliveries, client visits or transporting equipment. Many business owners in New Mexico have questions about what this coverage includes, how it differs from personal auto insurance and how much it costs. Understanding these key aspects can help you make informed decisions and protect your company from unexpected financial losses.

What Does Commercial Auto Insurance Cover?

Commercial auto insurance may protect businesses from financial losses associated with vehicle-related accidents. A standard policy typically includes the following:

• Liability coverage—This may cover bodily injury and property damage if you or your employees cause an accident.

• Physical damage coverage – This may include collision and comprehensive coverage to cover your vehicle after accidents, theft, vandalism or weather-related damage.

• Medical payments coverage—This may help cover medical expenses for you and your passengers, regardless of fault.

• Uninsured/underinsured motorist coverage—This may protect you financially if another driver is at fault but lacks adequate insurance.

• Hired and non-owned auto coverage—This may cover rented or employee-owned vehicles used for business purposes.

How Is This Coverage Different From Personal Auto Insurance?

One of the most common misconceptions is that a personal auto policy will cover business use of a vehicle. However, personal auto insurance is typically limited to individual activities and may not provide coverage for business-related incidents. Key differences may include the following:

• Higher liability limits—Commercial policies may offer more extensive coverage to protect against lawsuits and larger claims.

• Employee coverage—If employees drive company vehicles, a personal auto policy will not usually cover them.

• Business-specific risks—Commercial policies are tailored to cover risks associated with deliveries, transporting goods or specialized vehicle usage.

How Much Does This Coverage Cost?

The cost of commercial auto insurance varies based on several factors, including the following:

• Type of vehicles—Larger or specialized vehicles may have higher premiums due to increased repair costs.

• Business usage—Frequent driving, long distances or transporting heavy equipment can impact rates.

• Driver records—Safer driving history can result in lower premiums.

• Location—Insurance costs may vary based on New Mexico’s regulations, road conditions and accident rates.

• Coverage limits and deductibles—Higher coverage limits and lower deductibles generally increase costs.

Consider bundling policies, implementing driver safety programs and reviewing coverage annually to ensure your business is getting the best rates.

Learn More

If you need guidance on selecting the best policy for your business in New Mexico, contact the team at Berger Briggs Insurance for a customized quote.