Removing and Adding Drivers to Your Commercial Auto Insurance 

Managing commercial auto insurance can be a critical aspect of running a business. Understanding how and when to add or remove drivers from your policy is essential for maintaining adequate coverage and compliance with state regulations.

Commercial Auto Basics

Commercial auto insurance is designed to protect companies against financial losses from accidents involving business vehicles. This type of insurance may help cover the costs associated with property damage, medical expenses, legal fees and more—helping to ensure that your business can continue operations despite unforeseen events.

In , businesses that own and operate vehicles must have commercial auto insurance to demonstrate financial responsibility in case of an auto accident. The state mandates specific minimum liability insurance requirements for commercial vehicles, which are typically higher than those for personal vehicles due to the increased risks associated with business operations.

Depending on the nature of your business, you might need additional coverage. For instance, if your business involves transporting hazardous materials or carrying passengers, you may need to adhere to federal requirements and have higher coverage limits.

Besides the basic liability coverage, businesses often consider additional coverages such as collision, comprehensive, medical payments and uninsured motorist coverage to provide broader protection for their vehicles and drivers.

Adding Drivers to Your Commercial Auto Insurance Policy

When expanding your team or assigning new employees to operate company vehicles, adding them to your commercial auto insurance policy is crucial.

Review your policy to understand the coverage limits and ensure they meet your business needs. Collect driver’s license information from your new employee and contact your insurer. They can help make appropriate additions to your policy.

Adding a driver may affect your insurance costs, depending on the driver’s experience and driving record.

Removing Drivers from Your Policy

Similarly, if an employee is no longer with your company or no longer needs to drive a company vehicle, it’s essential to remove them from your policy to ensure accuracy and potentially reduce your premiums. Contact your insurer and provide the name and details of the driver to be removed.

Why Timely Updates are Crucial

Maintaining an up-to-date commercial auto insurance policy is vital for business continuity and legal compliance, particularly in states like with specific insurance mandates. Whether adding or removing drivers, it’s essential to communicate with your insurance provider to ensure your policy accurately reflects your company’s current state.

Contact Us

Plemons Insurance Agency in , , is here to assist companies looking to review or update their commercial auto insurance policies. Our team can help you navigate commercial auto insurance, ensuring that your business is appropriately protected and compliant with state regulations.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.