You've finally taken the plunge and decided to start your own business. Congratulations! Whether you're a one-man operation or have a whole team behind you, owning your own business is an exciting and rewarding experience. But as any seasoned entrepreneur will tell you, it's also a lot of work.
Not only do you have to worry about the actual product or service you're providing, but you also have to think about the business side of things like insurance. Cargo Van Insurance is one of those things that's often overlooked, but it's important to understand—especially before you get behind the wheel of your new business on wheels.
So what exactly is Cargo Van Insurance? What does it cover? Do you need it? And if so, what does it cost? Let's take a look!
What is Cargo Van Insurance?
Cargo Van Insurance is a type of commercial auto insurance. It's a policy that covers your vehicle—in this case, a Cargo van—for damages or injuries that occur while using it for business purposes.
Just like your personal auto insurance policy protects your personal vehicle, commercial auto insurance protects business vehicles.
Most Cargo Van Insurance policies will cover things like liability, collision, and comprehensive coverage. This means that if you're in an accident and it's determined to be your fault, your Cargo Van Insurance will help pay for any damage to the other vehicle (up to your policy limit).
It will also help pay for repairs to your Cargo van or replacement costs if the van is totaled.
Since Cargo vans are often used to transport goods or products, many Cargo Van Insurance policies will also include coverage for the contents of the van.
When Do You Need Commercial Vehicle Insurance?
If you use your Cargo van for business purposes—which is probably most of the time—then you need Commercial Vehicle Insurance. You might think, "But I have personal auto insurance; can't that cover me?"
The answer is maybe. If you're using your Cargo van for business purposes, your personal auto insurance policy might not cover you in the event of an accident. It's always best to err on the side of caution and get commercial vehicle insurance to ensure that you and your business are protected.
For example, let's say you're using your Cargo van to deliver flowers to a wedding. On the way to the venue, you get into a minor fender bender. No one is injured, but there's damage to both vehicles.
If you only have personal auto insurance, the other driver may try to file a claim with your insurer. But since you were using your Cargo van for business purposes at the time of the accident, your personal auto insurance policy may not cover the damage. This could leave you on the hook for repairs or even a lawsuit.
On the other hand, if you have commercial vehicle insurance, the damage would be covered under your policy. This would, in turn, protect you—and your business—from having to pay out of pocket for repairs or any legal fees.
In general, you need commercial vehicle insurance if:
- You use your Cargo van for business purposes (i.e., to transport goods or products)
- You transport passengers for a fee (i.e., you're a taxi or rideshare driver)
- You use your Cargo van to tow a trailer for business purposes
- You use your Cargo van to transport hazardous materials
- You have employees who drive your Cargo van for business purposes
- You use your Cargo van to deliver food or other items
If you're unsure whether or not you need commercial vehicle insurance, it's always best to speak with your insurance agent. They can help you determine what type of policy is best for you and your business.
What Is Covered Under Cargo Van Insurance?
Most Cargo Van Insurance policies will cover the following:
- Liability Coverage: Here's where things like bodily injury and property damage come into play. In the event that you're found at fault for an accident, the liability covers any damage to the other vehicle (up to your policy limit). It will also help pay for any medical expenses incurred by the other driver or passengers.
- Collision Coverage: While liability coverage protects you from damage to the other vehicle, collision coverage protects your Cargo van. You'll be covered for repairs (or replacement costs if the van is totaled), regardless of who is at fault for the accident.
- Comprehensive Coverage: Also called "other than collision" coverage, comprehensive coverage protects your Cargo van from damage caused by events that are out of your control, such as weather events, vandalism, or theft. Let's say your Cargo van is parked on the street, and a tree falls on it. If you have comprehensive coverage, your insurer will cover the cost of repairs.
- Medical Payments Coverage: This coverage is also sometimes called "personal injury protection" or "PIP." It helps pay for any medical expenses incurred by you or your passengers after an accident, regardless of who is at fault.
- Uninsured/Underinsured Motorist Coverage: If you're in an accident with a driver who doesn't have insurance (or doesn't have enough insurance), this coverage will help pay for any damage to your Cargo van, as well as any medical expenses.
How Much Does Cargo Van Insurance Typically Cost?
The cost of Cargo Van Insurance will vary depending on several factors, including:
- The type of Cargo van you have
- The state you live in
- The amount of coverage you need
- Your driving history
That being said, the average cost of Cargo Van Insurance falls between $3,300 and $6,200 per year. But keep in mind that this is just an average—your actual costs will vary.
When shopping for Cargo Van Insurance, be sure to compare quotes from multiple insurers to find the best rate. And remember, the cheapest policy isn't always the best policy. Make sure you're getting the coverage you need at a price you can afford.
The Bottom Line
Between the cost of repairs, legal fees, and medical expenses, an accident can be a major financial setback—especially if you don't have Cargo Van Insurance. But with commercial vehicle insurance, you can rest assured knowing that you and your cargo van are covered should the worst happen.
Still, have questions about Cargo Van Insurance? Tivly can help. We specialize in finding tailored insurance policies for business owners and can help you find the perfect policy for your Cargo van.
Ready to get started? Give us a call at 877-907-5267 or request a quote online. We're here to help you get the coverage you need at a price you can afford.
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