Commercial Auto Insurance for Realtors

Fran
Lucy Lazarony
December 22, 2020

Do you do a lot of driving for your real estate business? Do you drive around town showing clients your listings? Commercial auto insurance may be the best insurance choice for you. If you should get in an accident, you may be held responsible for a large amount of damage and even medical bills. Because of this, a work-related car accident can cost you a great deal of money.

Having a commercial auto insurance policy can provide a higher level of protection. In addition, you’ll have a higher level of liability coverage with a commercial auto insurance policy. If you transport clients to showings on a regular basis, this type of use for your car may disqualify you from a personal auto insurance policy. So you may have no choice but to sign up for a commercial auto insurance policy for your real estate business.

Also called business auto insurance, commercial auto insurance policies protect business vehicles from damage and theft. Let’s take a closer look at all the protections associated with carrying a commercial auto insurance policy for your real estate business.

What Cars Are Covered in a Commercial Auto Policy?

A commercial auto insurance policy covers motor vehicles that you own, lease or rent for your real estate business. So if you have more than one car you are using for your business travel be sure to sign it up for commercial auto insurance.

What Types of Vehicles Are Covered by Commercial Auto?

A commercial auto insurance policy covers many different types of commercial vehicles from regular cars and SUVs to vans and commercial trucks. For real estate professionals, a nice car or SUV does the trick for driving around clients.

Greater Coverage than Personal Auto

A commercial auto policy also covers physical damages and liability coverages for amounts and situations and usage of the vehicle not covered by personal auto insurance. Buying a commercial auto insurance policy gives you an extra level of protection for your business vehicles.

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What Does Commercial Auto Insurance Policy Cover?

A commercial auto insurance policy covers liability, collision, comprehensive, personal injury protection and uninsured and underinsured motorist coverages. Let’s take a look at each of these coverages found in a commercial auto insurance policy.

Bodily Injury Liability Coverage. Bodily injury liability pays for other people’s bodily injuries if you are at fault in an accident. In most cases, this coverage provides you with a legal defense.

Property Damage Liability Coverage. This coverage provides you with protection if you should damage another’s property with your vehicle. In most cases, this coverage also provides you with a legal defense.

Personal Injury Protection. Also known as no-fault insurance, this coverage pays the cost of your lost wages and medical bills up to a policy limit. PIP coverage will cover these expenses regardless of who is responsible for the accident.

Uninsured Motorist Coverage. This coverage pays for your injuries caused by an uninsured driver. Underinsured motorist coverage pays for damages caused by a driver without enough insurance.

Comprehensive Physical Damages Coverage. This coverage pays for damages to your vehicle from theft, vandalism, flood, fire and other covered perils.

Collision Coverage. This coverage helps to repair or replace your car if it is damaged in an accident with another vehicle or object such as a fence or tree.

Who Can Drive My Real Estate Business Car?

Employees, business associates, friends and family members can be added to your commercial auto insurance policy as drivers. So if someone else is going to be driving your business car, add them to your policy to ensure coverage.

Higher Liability Limits than Personal Auto

Commercial auto insurance policies come with higher liability limits than a standard auto insurance policy. Because of this, your real estate business will have greater protection if one of your business associates should cause an accident with your business car.

Getting Additional Liability Coverage for Your Business Car

If you’d like extra liability protection for your commercial auto insurance policy, you may want to consider excess liability insurance.

Excess liability insurance is a type of insurance policy that provides higher coverage limits when placed on top of an original primary policy. The purpose of excess liability insurance is to close gaps in coverage and provide an extra layer of protection should the primary insurance, such as commercial auto, be exhausted.

Excess liability insurance cannot be applied to multiple policies. So if you have multiple commercial auto insurance policies that you would like to protect you may want to consider a commercial umbrella policy.

A commercial umbrella policy works much the same way an excess liability insurance policy works. A commercial umbrella policy steps in when a primary insurance coverage has reached its limit.

But unlike an excess liability insurance, a commercial umbrella policy can be applied to multiple policies. So if you have multiple commercial auto insurance policies to protect this may be the coverage for you.

Professional Liability Insurance for Realtors

Professional liability insurance protects professionals, including real estate professionals, against negligence and other claims from clients. Professional liability insurance for real estate professionals is called errors and omissions. And you’ll want to look into this policy when you sign up for commercial auto insurance.

Professional liability insurance covers claims of negligence, violation of good faith and fair dealing, inaccurate advice and misrepresentation. The median annual cost of a professional liability insurance is about $60 per month or $720 a year. Reach out to your insurance professional for details about this important policy.

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