When starting a business, it’s crucial to review your state’s regulations and requirements. Many states have strict guidelines for businesses, even when it comes to insurance. If your company uses vehicles for work purposes, it’s likely that you’ll be required to carry commercial auto insurance.
Commercial auto insurance provides a range of coverages for commercial vehicles including:
- Liability: Liability insurance covers bodily injury liability and property damage liability. This insurance provides compensation if you cause bodily injury or property damage while operating the insured vehicle. It may also help pay for legal fees.
- Comprehensive: Comprehensive coverage covers incidents involving fire, wind, theft, vandalism and more.
- Collision: Collision coverage covers damages that occur due to a collision with another vehicle or object.
- Uninsured/Underinsured Motorist: Not every driver on the road carries insurance as they should. Uninsured/underinsured motorist coverage provides compensation for damages in the event of a crash with a motorist driving without insurance. This insurance may be required, though it can be waived. It’s recommended that you carry $25,000/$50,000 in this coverage and $20,000 for hit-and-run accidents.
States typically require a certain amount of liability insurance for commercial vehicles, and Virginia is no different.
Virginia Commercial Auto Insurance Requirements
- $25,000 in bodily injury liability per person
- $50,000 in bodily injury liability per accident
- $20,000 in property damage liability
Keep in mind that the amount of insurance required also depends on the vehicle and the type of cargo it will be transporting. Passenger vehicles and vehicles carrying hazardous material present more risk than other vehicles, meaning they require more insurance. This also means that the cost of insurance for these vehicles will be higher.
Virginia’s additional commercial auto insurance requirements include:
- $350,000 in liability for passenger vehicles carrying 1-6 people
- $1,500,000 in liability for passenger vehicles carrying 7-15 people
- $5 million in liability for passenger vehicles carrying 16 or more people
- $750,000 in liability for intrastate property carriers
- $750,000 in liability for household goods carriers
- $300,000 in liability for vehicles between 7,500-10,000 pounds GVW
- $750,000 in liability for vehicles over 10,000 pounds GVW
- $125,000 in liability for taxicabs
As expected, the cost of commercial auto insurance varies along with the vehicle and the amount of coverage you must purchase. Be sure to review your state’s requirements and keep them in mind when searching for an auto insurance quote. Speak with an insurance agent about insuring your company’s vehicles.
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