In addition to the personal insurance that New Jersey business owners have to carry for their family cars, they must provide Commercial Auto Insurance NJ as well. Commercial policies cover much the same as individual plans plus the additional factors that come into play when vehicles are used for commercial purposes. A quick overview of the two types of coverage will explain the differences.
Commercial Versus Individual Insurance
The primary difference lies in the fact that commercial auto insurance is pinpointed to provide coverage for the more specific activities of vehicles used for business. Companies that deliver products, for example, will have different needs than those whose main business is transporting people. Individual polices will carry basic amounts for property damage and human injury. Commercial policies will go into greater detail. They take into account statistics for types of businesses, plus the factors weighing whether more coverage is needed for drivers and property liability or for personal injury of passengers.
Unique Aspects of NJ Coverage
New Jersey requires coverage to protect drivers from under insured motorists. This is true for both individual and commercial auto policies. If one motorist causes an accident resulting in 25,000 dollars of damage but holds insurance with only 20,000 dollars of liability coverage, the under insured motorists plan will pay the difference. Commercial vehicles with their many hours on the road can benefit greatly from this insurance requirement.
Businesses need to protect themselves and their employees against unplanned occurrences on the road. Commercial auto insurance New Jersey will provide security. It is a legal necessity and a protection for everyone on the road.