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    New Jersey Commercial Auto Insurance

    New Jersey Commercial Auto Insurance

    The 908,000 small businesses in New Jersey need commercial auto insurance to be protected from incidents involving their company vehicles. Due to their higher risk exposure than personal automobiles, commercial vehicles frequently need specialized coverages and limits that aren't normally provided by personal auto policies.

    Several small business owners, whether they own cleaning services in Jersey City or a fleet of landscaping trucks in Trenton, should receive specialized coverage to suit their particular business needs.

    Any business in New Jersey that uses a car for work must have the proper insurance. While hired and non-owned auto insurance (HNOA) covers personal, rented, and leased automobiles used by your business, commercial auto insurance only covers the vehicles owned by your company.

    Learn more about the significance of a business owner's insurance in New Jersey and what steps you must take to guarantee adequate coverage for your corporate vehicles by reading on.

    Requirements For New Jersey Auto Insurance 

    Any business in New Jersey that uses a car for work must have the proper insurance. While hired and non-owned auto insurance (HNOA) covers personal, rented, and leased automobiles used by your business, commercial auto insurance only covers the vehicles owned by your company.

    Regardless of who is to blame for an accident, New Jersey state law requires you to obtain personal injury protection (PIP) coverage to cover your drivers' and passengers' medical costs.

    A minimum liability limit of $15,000 per person, $30,000 per accident for physical injury, and $5,000 for property damage (i.e., 15/30/5), as required by state law, must be included in all commercial auto plans. Because it pays more than a third party's PIP coverage, this is known as residual bodily injury and property damage (RBI-PD) in New Jersey.

    What Does New Jersey Commercial Auto Insurance Cover?

    A commercial vehicle insurance policy is a special type of auto insurance designed to cover losses and damages to or incurred by a commercial vehicle and its owner-driver. This may cover losses and damages from mishaps, collisions, natural disasters, fires, etc.

    Similar coverages, including liability, collision, comprehensive, medical payments (or personal injury protection), and uninsured motorist coverage, are offered by commercial vehicle insurance, similar to your personal auto policy but typically with higher coverage limits.

    Quick Statistics On Commercial Auto Insurance In New Jersey

    Legal fees and other costs are covered by commercial auto insurance if a company vehicle is involved in an accident. In New Jersey, it is necessary for all commercial vehicles. 

    However, people in New Jersey continue to suffer injuries at work while not having adequate insurance from their employers without proper business insurance or commercial car insurance coverage.

    Here are recent figures on Jersey commercial auto insurance and vehicle accidents in New Jersey:

    • Commercial auto insurance in the US is estimated to be a $52.5 billion industry by 2027.
    • In 2018, there were 278,413 vehicle accidents in New Jersey.
    • Of those, 524 caused fatalities and 61,043 injuries, taking the lives of 563 people.
    • According to the National Highway Transportation Administration, distracted driving accounts for 8.5% of all accident fatalities.
    • The National Highway Traffic Safety Administration estimates the societal cost of speeding accidents to be $40.4 billion annually.
    • 36% of fatally injured drivers in New Jersey in 2018 were drunk drivers. A third or more of fatal pedestrian accidents included drunk drivers.

    Frequently Asked Questions About New Jersey Commercial Auto Insurance

    Here are some questions small business owners typically ask about commercial auto coverage in New Jersey:

    1. Which coverage is not a default under the majority of commercial auto insurance contracts?

    Gradual Wear and Tear: Loss resulting from the vehicle's natural wear and tear is not covered by a standard plan. This is the rationale behind the insured value—technically known as the Insured Declared Value (IDV) of your car—being lowered down to account for depreciation at the time of policy renewal.

    2. Is commercial auto insurance going to cover an engine oil leak?

    The engine protection insurance will pay for the cost of repairing the engine if you experience an oil leak. If water damage results from leaking into the vehicle's engine. Suppose your gearbox breaks down after an incident or accident. If flooding causes the engine to hydrostatically lock up, the engine will be protected.

    3. What type of insurance am I?

    To examine the specifics of your auto insurance coverage, go to the Insurance Information Bureau's website, established by the Insurance Regulatory and Development Authority of India (IRDAI).

    4. Is full coverage insurance complete?

    A comprehensive policy covers damage to the car resulting from collisions, theft, losses to third parties, natural disasters, accidents resulting in physical injury or death, and fire damage. Full coverage is comprehensive auto insurance.

    5. Can a vehicle be converted from commercial to private use?

    Because the more expensive commercial option already covers high mileage, if you own a van you use for business purposes, you are secure using it for private purposes. If the vehicle is also utilized for your personal affairs instead of a second vehicle, this will rise. 

    Other Insurance Types

    Knowing the different types of auto insurance and their coverages is important in getting the right policy for you if you want to cover your bases and get your commercial vehicles insured. Here are some of the most common types of car insurance, how they work, and what they cover:

    Reliable commercial or business auto insurance remains competitive in small and large enterprises. However, finding the right commercial auto policy or coverage with medical expenses and liability insurance can make a big difference in your business's future. 

    To learn more about commercial auto insurance policies for your business in New Jersey, read through our blogs at Assured Standard and grasp what smart long-term business solutions could look like.

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