Get New Jersey commercial auto insurance quotes, cost & coverage fast. NJ business auto helps pay for damaged vehicles, property, bodily injury and medical expenses if you or an employee is found at fault for an accident.
NJ Business Auto Insurance
It's pretty obvious that a company that has a fleet of vehicles and uses them to transport goods or perform services should have New Jersey commercial auto insurance. However, if you own a small company or are a sole proprietor and don't have commercial drivers, it can be hard to determine if this type of insurance is right for you. Your personal auto insurance may not cover you or any of your employees in the event of an accident, so it's essential to find out immediately if New Jersey commercial auto insurance is necessary.
Business auto insurance is a policy that covers any NJ vehicles that are used for your business, as well as the people who drive those vehicles. It provides financial protection for you and any employees that drive for reasons related to your business if an accident or some other type of incident occurs.
While business vehicle insurance has some similarities to personal auto policies, there are notable differences in eligibility, coverages, exclusions, definitions & limits. Commercial car insurance is needed for certain type of vehicles (think heavy vehicles like tractors, dump trucks etc.). This can include cars used for business purposes as well as box trucks, food trucks, service utility trucks, etc.
Does My Business Need New Jersey Commercial Auto Insurance?
The best way to determine whether or not you need New Jersey commercial car insurance is to speak to an insurance agent or someone else who has ample knowledge of the topic. However, if the business you operate uses vehicles on a regular basis, it's a pretty safe bet that you are going to need it, no matter what size your business is.
Some professions that require New Jersey commercial auto insurance include the following:
- Home heating oil companies
- Delivery companies (food, packages, etc.)
- Livery drivers
- Tow truck operators
If your profession isn't listed above, don't assume that you don't need NJ business auto insurance. As mentioned, if your business uses vehicles, there's a pretty good chance that you are going to need it. Also you might be contractually required to have it of a customer requires it as part of a deal.
What Does New Jersey Commercial Auto Insurance Cover?
You might already have some familiarity with some of the different types of business car insurance since many polices share names with personal vehicle insurance policies. Some of the most commonly used coverages in policies include:
- Collision. This covers any damages that a vehicle may receive if it is involved in an accident.
- Comprehensive. This policy covers any losses that occur if your vehicle becomes damaged in an accident that does not involve a collision, such as fire, flooding, hail, damage from a fallen tree, theft, or vandalism.
- Liability. This policy covers bodily injuries that others may sustain as a result of a vehicle that is used for your company. It also covers any expenses to replace or repair someone else's property should a business vehicle cause an accident. It is the most commonly needed - and required - New Jersey commercial auto insurance coverage.
- Uninsured / Underinsured Motorist. With this coverage, any injuries that are sustained or damages to your vehicle will be covered if an accident occurs with someone who does not have insurance or who does not have enough coverage to pay for the damages or injuries.
Whatever policy you choose, you should consider extending it so that it will cover any employees who may drive in order to complete tasks that are related to your NJ business. For example, if you own a restaurant that delivers food, it's a wise idea to have your delivery drivers covered.
What New Jersey Commercial Auto Insurance Doesn't Cover
Know as exclusions, which elimiate risks for the insurer, New Jersey commercial auto insurance typically does not cover:
- Intentionally damage caused by the business owner or employees.
- Workers compensation.
- Employer's liability.
- Contractual liability.
- Amounts beyond the policy limits and auto value.
How Much New Jersey Commercial Auto Insurance Coverage Do I Need?
It can be tricky to figure out how much vehicle insurance you will need for your business. An agent that specializes in this type of insurance will be able to help you determine an appropriate amount for your specific needs. It's important to be aware that at the bare minimum, you have to make sure that you have enough coverage to comply with any insurance requirements that are set forth by New Jersey.
The following factors can be used to help you figure out how much coverage your business will need:
- Your business' size
- How much your assets are worth
- The amount of vehicles your company uses
- The number of people who drive for your business
- How much you will be able to afford to pay out of pocket in the event that an accident does occur
How Much Does New Jersey Commercial Auto Insurance Cost?
How much does New Jersey commercial auto insurance cost? The average price of business vehicle insurance varied widely based on certain factors. The premiums vary depending on the company and their underwriting rules, and it depends on the coverages and deductible selected. Following are some of the main factors that go into the price of a policy based on the business:
- Geographical location - The more dangerous your location is the higher premiums you will pay as there is a higher probability for claims. If you live in a highly populated urban area accidents and insurance claims happen more often and rate are higher.
- Previous insurance coverage - Continual auto insurance history can help get you a better rate.
- Vehicle types - Purchase price, theft rate, cost of repairs, accident rate and safety tests weigh heavily in car insurance cost.
- Vehicle use - A vehicle used to haul hazardous waste more of a risk than the van used to drive to a worksite.
- Miles driven annually - The less you drive, the less risk you have of being in an accident.
- Business credit history - The better credit you have, the lower your rates. Most insurers look at credit and weight it heavily.
- Coverages - The more coverage you choose with higher limits, the more it will cost you since the insurer is taking on additional risk.
- Deductibles - The deductible is your out of pocket cost before your policy kick in. Lower deductible = higher premium, and higher deductible = lower premium.
And the following factors have an effect on the price based on the acutal drivers:
- Age - Typically drivers under 25 pay more because statistically shown to be inexperienced behind the wheel, easily distracted and to crash more often. They are on of the riskiest category of drivers to insure.
- Gender - Data shows males are more likely to crash, hence men's premiums are higher.
- Marital status - Married people have been found to be less of a risk to insurers than singles, including divorced or widowed drivers.
- Years of driving experience - Inexperienced drivers pose more risk. That is why under 25 have some of the highest rates.
- Driving record - Drivers with a clean driving record qualify for better rates and can be eligible for a safe driver discount.
- Claims history - More claims = more premium. Insurers actually count frequency (how many claims in a time frame) more than severity (how large the claim was).
What Are New Jersey's Financial Responsibility Requirements?
According to the NJ Department Of Banking & Insurance:
Auto insurance is required in New Jersey. Whether you are buying a new insurance policy or renewing your current policy, you must make many decisions about the coverage you need and how much you can pay. The Standard Auto Insurance Policy provides a number of different coverage options and the opportunity to purchase additional protection. The Standard Policy is the type of policy chosen by most New Jersey drivers.
It is important to understand your needs. Do you rent or own your own home? Do you have assets to protect (including income from a job)? Will your own health insurance cover auto accident injuries? How much insurance coverage can you afford? These are some of the questions you should ask yourself before choosing a specific coverage plan.
The Basic policy option is the more affordable insurance package; however, it offers limited coverage, including:
- $5,000 of property damage liability (PDL) per accident. This covers damage you may have caused to someone's property in a car crash.
- $15,000 of personal injury protection (PIP) per person, per accident. This coverage pays for injuries you suffer in a car crash.
- Up to $250,000 for very severe injuries, such as permanent brain injuries.
Bodily injury liability (BDL) coverage is not included in the Basic policy; however, policyholders are offered the option to purchase $10,000 of BDL coverage.
The Standard policy option has a higher premium but offers more extensive coverage. With the Standard policy, you get a minimum of:
- $15,000 of bodily injury liability (BDL) insurance per person, per accident. This coverage will pay for injuries to anyone not in your car if you cause a car crash.
- $30,000 of BDL for multiple injured people per accident.
- $5,000 of PDL per accident.
- $15,000 of PIP per person in a car accident.
- Up to $250,000 of PIP for severe or permanent injuries.
Further Reading On Business Auto Insurance
Read through helpful commercial auto insurance for small business to help you better understand polices you own or are buying.
- Business Auto Coverage Form
- Bobtail And Deadhead Coverage
- Bobtail And Physical Damage Insurance
- Bobtail Insurance vs Non-Trucking Liability
- Commercial Auto Insurance Hired And Non-Owned
- Commercial Auto Insurance vs Personal Cost
NJ Business Auto Insurance Quotes
Request a New Jersey Commercial Auto Insurance quote in Atlantic City, Bayonne, Bergenfield, Bridgeton, Camden, Carteret, Cliffside Park, Clifton, Dover, East Orange, Egg Harbor, Elizabeth, Elmwood Park, Englewood, Fair Lawn, Fort Lee, Garfield, Glassboro, Hackensack, Hawthorne, Hoboken, Jersey City, Kearny, Linden, Lodi, Long Branch, Millville, Morristown, New Brunswick, Newark, North Plainfield, Palisades Park, Paramus, Passaic, Paterson, Perth Amboy, Plainfield, Pleasantville, Point Pleasant, Rahway, Ridgewood, Roselle, Sayreville, South Plainfield, Summit, Trenton, Union City, Vineland, West New York, Westfield and all other cities in NJ.
Insurance Regulations In New Jersey
There insurance regulations that govern both business and personal insurance in the state of NJ. There are certain regulations that you want to keep in mind whether you are getting insurance as a private party, or you may have a business and are concerned about the regulations and oversight of your business insurance.
New Jersey Commercial Insurance
The regulations governing business insurance start with general liability insurance. General liability insurance protects you from lawsuits from people that come on your property with a variety of coverages. For example, it may protect against bodily injury, it may also protect against property damage caused by your business - for example, if your sign falls on someone's car - or it may protect against advertising, false arrest and lots of other different things that can happen. However, keep in mind that general liability insurance is not required in the state of New Jersey.
There are certain types of insurance that are required by businesses in New Jersey though. One of the regulations governing business insurance in New Jersey requires that anyone who has a full-time or part-time employee carry Worker's Compensation insurance to cover that employee. Workers comp is sort of like health insurance for employees that get hurt on the job.
In addition, NJ law says that employers must provide employee disability coverage to provide income for employees who are injured on the job and have to take time off due to a temporary or permanent disability. Finally, businesses in New Jersey are required to carry commercial auto insurance for company vehicles.
NJ Personal Insurance
The first type of personal insurance that will be discussing is auto insurance. Personal auto insurance in New Jersey requires that the driver carry $15,000 per person and $30,000 per accident in liability coverage. In addition, there must be an additional $5000 for property damage.
As far as life insurance regulations, insurance companies must be regulated by the Department of Banking and Insurance which maintains all records of insurance companies that are licensed to do business in the state. In addition, residents have a 10 day free look period, a grace period of 30 days and insurance companies must make payments in a timely fashion; which is within two months of receiving proof of death from the beneficiary.
If you are looking for state specific Commercial Auto Insurance quotes, costs and information: California Commercial Auto Insurance, Colorado Commercial Auto Insurance, Delaware Commercial Auto Insurance,Florida Commercial Auto Insurance, Illinois Commercial Auto Insurance, Kentucky Commercial Auto Insurance, New Jersey Commercial Auto Insurance, New York Commercial Auto Insurance, Oregon Commercial Auto Insurance, Pennsylvania Commercial Auto Insurance, Texas Commercial Auto Insurance, Washington Commercial Auto Insurance.