new york life insurance

Get a Quote

Understanding How Commercial Auto Insurance Works in New York

Commercial auto insurance in NY refers to an insurance policy for business vehicles. The policy may cover cars used for business purposes, a fleet of taxicabs, or trucks owned or leased by enterprises.

Companies that need vehicles for their operations must have a commercial auto insurance policy. This policy is usually more expensive compared to personal auto insurance. The mileage covered by business vehicles is often long, making them susceptible to risk compared to all the other cars.

A business automobile policy covers liabilities, injuries, and damages caused by an accident. Commercial vehicles can be used to transport goods or people, and in case of an accident, the policy will cover all the losses.

Components of the commercial auto insurance

A commercial auto insurance New Yorkhas property and liability components. The property component protects the vehicle’s value against theft, crashes, and other damages. The liability component will defend the company when found at fault for causing damages, crashes, or bodily injuries to someone else’s property or vehicle.

What the Business Automobile Policy Covers

Commercial auto insurance NYoffers coverage to property and liability. Property coverage is for the value of all the vehicles owned or leased by the business. Liability coverage may require minimum policy amounts.Bottom of Form

Commercial Auto Property

Commercial auto property component has two coverages, including comprehensive physical damage and collision.

Comprehensive physical damage

Comprehensive physical damage is a coverage that pays the company for the loss of a vehicle. The car may be stolen or damaged by falling objects, flooding, glass breakage, fire, vandalism, or theft.

If the company car was stolen and cannot be tracked, the comprehensive coverage will pay for the vehicle’s value by the time it was stolen. If the car was damaged by a falling tree, the coverage would shoulder the repair costs. If it is irreparable, the company will be paid the full value of the car before the damage was caused.

When calculating payouts, both the comprehensive and collision components consider depreciation. Vehicles depreciate with time, and insurance companies will only pay for the value of the car after evaluating its depreciation.

Collision Coverage

Collision coverage settles all the physical and mechanical damages to company vehicles when hit by another car or object. If the vehicle hit a wall or crashed into a truck, collision coverage will take care of the repair costs.

If the repair costs exceed the vehicle’s value before the accident, the coverage will pay a pre-cash value of the car.

Commercial Auto Liability

The liability component protects the business when, while driving, the owner or an employee causes damage or injury to another party. If they are at fault, the insurer will take care of the legal fees and the cost of the damage.

Some policies cover property damage and bodily injury as a single limit liability while others separate the two coverages. Your state may require that all company registered vehicles have minimum property damage and bodily injury liability coverage.

Bodily Injury Liability

Bodily injury liability covers the company when the owner or an employee causes a crash and physically injures other people. Victims could be passengers in their own car, drivers or passengers in the other vehicles, or pedestrians. The liability will cover medical expenses, funeral costs, pain and suffering, loss of income, and the legal fees.

In most cases, the commercial auto insurance NY offers separate limits ‘per accident’ or ‘per person,’ and the limits are expressed per person/per accident. The insurance company will pay a specific limit for every injured person or people during the crash. When choosing your limits of liability, you should consider the premiums you are willing to pay.

Property Damage Liability

Property damage liability covers any damaged caused to other people’s property while driving. If the company is at fault for crashing into someone’s building, fence, or another vehicle, the liability will shoulder the costs of repair up to the limit agreed upon.

Medical Payment Coverage

Medical payment coverage is a no-fault coverage that pays for medical and funeral expenses for company drivers and passengers involved in an accident. Regardless of who caused the crash, the insurance company will settle the costs. Medical payment comes with a lower limit of liability as well.

Underinsured and Uninsured Motorist Coverage

This type of coverage is mandatory in some states, but not others.

Uninsured Motorist Coverage

It is against the law to drive any vehicle that is not insured, but some people still break this law. If an uninsured car crashes into a company vehicle and causes injuries to the company driver and passengers, the company’s insurance provider will pay for the injuries.

Uninsured vehicles may not be able to cover the costs, so the coverage will settle them by paying for the injuries of the parties involved.

Underinsured Motorist Coverage

Some states may require that a company provide a minimum liability insurance amount per accident. In cases of serious accidents caused by the company driver, the limit may hinder the insurance company from paying for full medical expenses.

The underinsured coverage, however, will take care of the expenses for the injuries, even those that have exceeded the limits of the insurance.

Who Qualifies for Commercial Auto Insurance?

A company qualifies for commercial auto insurance when it owns or leases vehicles under its name. It is a requirement in many states that each registered vehicle gets minimum liability insurance levels.

Therefore, 1099 contract workers, business owners, or employees qualify for commercial auto insurance for their vehicles. This is as long as the cars are used for business purposes such as transporting clients, carrying tools, or visiting job sites.

Commercial auto insurance in New York will not cover employees with personal cars who help to run errands for the business. Companies that engage employees to run errands with their personal vehicles or those that rent or hire cars for business purposes should buy a hired or non-owned auto insurance to add to the commercial auto coverage.

Factors that Determine the Cost of Commercial Auto Insurance

Before getting the best commercial auto insurance NY quote for your business, consider the following factors:

The number of vehicles and drivers – Commercial auto insurance in NY bases their costs on the number of cars and drivers the company wants to insure. Some offer another option of insurance known as fleet insurance to companies with a fleet of vehicles and drivers to insure. Fleet insurance is less costly compared to commercial auto insurance.

Business location – The Company’s location will affect the price quotation. What determines the quote are odds on issues like the area’s theft rates.

The vehicles to be insured – The type of cars the company has will determine the cost of insurance. For example, sporty cars are expensive to insure than sedan vehicles.

Drivers’ field records – If the company drivers have clean driving records, the premium will be cheaper.

Antitheft and safety gear – If the vehicles are fitted with anti-theft and safety accessories such as GPS systems, alarms, or airbags, the costs will be lower.


It is crucial for every business to purchase commercial auto insurance New York if it owns or leases vehicles. Before choosing your commercial auto insurance, you have to find out the type of coverage that is best suited for your needs.

At Pamphile Insurance Brokerage, we provide commercial auto insurance that suits your needs and budget. Call us today for a quote.

Schedule Appointment

Fill out the form below, and we will be in touch shortly.
Contact Information