The Importance of Commercial Auto Insurance Companies in Oklahoma

Business owners in Oklahoma who own or use vehicles for their companies need to carry commercial auto insurance coverage. Period.

Oklahoma is an ‘at-fault’ state, meaning the person at fault for an accident, is responsible for paying for other people’s injuries and property damages due to the accident. Also, drivers can sue for compensation for medical expenses after an accident. This puts a lot of risk on a business if they aren’t carrying adequate insurance.

Commercial auto insurance policies cover vehicles owned by the company typically with higher limits than personal auto insurance policies. Employees of the company who have a valid driver’s license are covered under this policy.

Coverage for vehicles that are used for company business but aren’t owned by the company requires separate hired, leased or non-owned auto insurance (HNOA) for protection.

Many people mistakenly believe that their personal auto insurance policy will cover them while performing work duties such as making deliveries or picking up supplies. However, to adequately protect your business in the event of an accident, don’t rely on a personal auto policy, a commercial auto policy is critical. 

If you're looking for more information about a commercial auto insurance policy in Oklahoma, the Hopewell team is here to help. We can answer any of your questions about auto insurance in Oklahoma, as well as give you a free, no-obligation estimate on your policy.

What is commercial auto insurance and why do you need it? 

Oklahoma requires that all vehicles be covered by an auto liability policy to be driven legally. The minimum liability auto insurance in Oklahoma is 25/50/25, or $25,000 of bodily injury liability coverage per person, $50,000 per accident and $25,000 of property damage liability coverage. However, carrying only minimum coverage will likely not offer complete protection in the event of an accident, particularly when medical expenses are involved. 

Commercial auto coverage protects your business if one of the vehicles owned by your business is involved in a covered accident. This insurance policy will cover bodily injury or property damages for involved parties.

For example, if an employee swerves to miss a deer and drives through someone’s fence, the policy will pay for the damage. Or if one of your drivers is involved in a covered accident that causes personal injuries, including fatality, the insurance company will cover it.

Any number of accidents can result in the need to pay medical expenses and physical damages. Having an adequate policy that covers your commercial vehicles can save your business from financial devastation.

Most Common Commercial Auto Insurance Options

If you’re not sure exactly what kind or amount of coverage you need, Hopewell can help. But to give you an idea of what is offered, here is a basic look at the most common policies available.

Liability

General liability helps protect against liability claims or lawsuits due to property damage or bodily injury caused by a covered auto. It includes property damage liability coverage and bodily injury liability coverage.

Uninsured & Underinsured Motorists

Uninsured motorist coverage helps pay for you or your employees’ medical expenses and property damages if caused by another driver who is uninsured or lacks liability coverage.

Comprehensive Coverage

Comprehensive pays for damage to a covered vehicle by incidents not related to a collision. Covered incidents include, but are not limited to theft, vandalism, fire and natural disasters.

Collision Coverage

Collision insurance helps repair or replace your vehicle if you collide with another vehicle or object.

Medical Payments

This coverage helps pay for expenses related to medical care or death, such as medical or dental treatment, rehab or physical therapy, or funerals, for you or your employees or other covered persons in a covered accident, regardless of fault.

Other Commercial Auto Insurance Options 

Additionally, you may find yourself in need of some more specialized coverage for your commercial automobile. 

Towing 

Towing covers the cost of towing your vehicle in the event of an accident or it breaks down.

Rental Reimbursement

Rental reimbursement coverage provides up to a set amount for rental vehicle expenses while your covered vehicle is being repaired or replaced.

Hired, Leased or Non-Owned Insurance

Provides liability coverage against lawsuits if you or your employees are involved in an accident with a personal, rented or leased car used for business purposes. The downside is this insurance typically has coverage exclusions for damages to your vehicle.

How much does commercial auto insurance cost?

Like with personal auto coverage, the premium you will pay for a commercial insurance policy is based on various factors. First and foremost is the industry the vehicles are used in and the types of vehicles insured. For example, truck insurance will cost more than insuring economy cars. 

Other factors may include:

• Value of vehicles
• Number of vehicles
• Level of risk involved in the vehicle’s use
• Claims history
• Driving records of employees
• Policy limits and deductibles

Businesses insuring at least three vehicles may want to consider fleet insurance. One benefit of this type of insurance is remembering a single insurance renewal date for all vehicles. Also, fleet coverage is usage-based allowing replacement vehicles to be covered if one of the regular vehicles on the policy is being repaired.

Hopewell Can Help

At Hopewell, we pride ourselves on being an honest insurance solution provider for Oklahoma. We offer various types of business insurance, including commercial auto. We would love to put together a quote that meets your business insurance needs. Get started working with us today.