If your business is ever on the road, you need commercial auto insurance in New Jersey. Insurance for your commercial vehicles protects you, your company, your driver, and the entire fleet in case the unexpected happens. It's also a requirement laid on local businesses by the state, making adequate insurance coverage for your commercial vehicles a cost of doing business.
Commercial Auto Insurance in New Jersey
Commercial auto insurance operates like the insurance you have on your personal car, except it's for vehicles used in the course of business. A commercial auto insurance policy covers the unique risks associated with business vehicles. This includes vehicle damage, medical expenses, and liability related to negligence or recklessness.
Who Needs Commercial Auto Insurance in New Jersey?
Any business owner in New Jersey who uses vehicles for business purposes needs commercial auto insurance. This includes companies that own or lease vehicles, as well as those that use personal vehicles for business activities. Commercial auto insurance is indispensable for delivery services, construction companies, real estate agencies, and shipping firms.
New Jersey Commercial Auto Insurance Requirements
New Jersey law requires businesses to carry certain minimum amounts of commercial auto insurance coverage. The minimum requirements include:
- Bodily injury liability: This covers medical expenses and lost wages for others if you or your employees are at fault in an accident. The minimum coverage is $15,000 per person and $30,000 per accident for smaller vehicles, with coverage requirements in 2024 jumping to $1.5 million for heavy trucks.
- Property damage liability: This covers damages to other people’s property caused by your commercial vehicle. The minimum requirement is $5,000 per accident.
- Uninsured/underinsured motorist coverage: This protects your business vehicles and drivers if they're involved in an accident with a driver who has insufficient or no insurance. The minimum coverage matches the bodily injury liability limits.
Depending on the nature of your business, you might need higher limits or additional coverage, such as collision, comprehensive, and medical expenses.
What Else Does Commercial Auto Insurance Cover?
Beyond the basic requirements, commercial auto insurance can include a variety of additional coverage to better protect your business. These may include:
- Collision coverage: This pays for damage to your business vehicles resulting from a collision, regardless of fault.
- Comprehensive coverage: This covers non-collision-related damages such as theft, vandalism, fire, or natural disaster.
- Medical payments coverage: This covers medical bills for the driver and passengers in your business vehicle, regardless of fault.
- Hired and non-owned auto coverage: This provides liability coverage for vehicles your business rents or borrows.
- Rental reimbursement: This covers the cost of renting a replacement vehicle while your business vehicle is being repaired.
Why Is Commercial Auto Insurance Important?
Commercial auto insurance is important for several reasons:
- Legal compliance: As mentioned, New Jersey law requires businesses to have commercial auto insurance. Without it, you risk hefty fines and legal consequences.
- Financial protection: Auto accidents can result in significant expenses, including vehicle repairs, medical bills, and legal fees. Commercial auto insurance helps cover these costs, protecting your business’ financial health.
- Liability coverage: If your business vehicle is involved in an accident, you could be held liable for damages and injuries. Commercial auto insurance provides liability coverage to protect your business from costly lawsuits.
- Asset protection: Your business vehicles are valuable assets. Comprehensive coverage ensures you can repair or replace them without incurring substantial out-of-pocket costs.
How Much Does Commercial Auto Insurance Cost?
The cost of commercial auto insurance in New Jersey varies based on several factors, including:
- Number and type of vehicles: Larger fleets or specialized vehicles may cost more to insure.
- Driving records: Drivers with clean records typically cost less to insure than those with histories of accidents or violations.
- Coverage limits: Higher coverage limits and additional coverage increase the cost of the policy.
- Location: Areas with higher traffic or crime rates may have higher premiums.
On average, New Jersey business owners can expect to pay between $1,500 and $2,000 per vehicle annually for commercial auto insurance. However, getting a customized quote from an insurance provider is the best way to determine the specific cost for your business.
Get a Free Quote for Commercial Auto Insurance in New Jersey
To ensure you have the right coverage for your business, you need a free quote from a trusted source. Tivly is the first place to check when you're in the market for a commercial auto insurance policy. Get in touch today for your free quote.
Reviewed By: Andrea McKinney, MBA, Licensed Agent
