Public transportation includes, but is not limited to, commuter vans, vans for charter services, transportation to concerts and sporting events, convention shutters, tours, and weddings. The types of vehicles that fall under this insurance coverage are those that transport paying customers from one destination to another. Commercial transportation insurance is protection designed specifically to serve the needs of businesses involved in moving people or cargo.
Vehicles used for transportation purposes need to file proof of financial responsibility when they register their cars, insuring their cars for a minimum of $250,000 and $50,000 for bodily injury and property damage, respectively. The limits of liability coverage a transportation a company can obtain needs to meet the legal requirements of both the city and state.
*Note: These numbers are just to give you an idea and the limit may change from insurance company to company. If you require more coverage, you can discuss obtaining higher limits with your insurance company.
Different Types of Public Transportation Insurance Coverages
Insurance companies offer the following types of public transportation insurance coverages:
Liability Insurance Coverage
One of the most important public transportation for companies to obtain includes liability insurance coverage. It covers your company in the event one of your vehicles gets into an auto accident where you or one of your drivers is at fault.
Liability insurance coverage covers bodily injury and property damage. Bodily insurance covers the costs of an ambulance for the driver or passengers in another car involved in the auto accident. Property damage covers the costs of damage to other cars or another person’s property.
Collison coverage covers any repairs or replacement costs if your car crashes into an object or another car, or if it is rolled over. This coverage is designed to fix up or replace your own car after a collision.
Medical Payments Coverage
Medical payments coverage pays for your medical bills in the event you are involved in an auto accident, as well as of the passengers sitting in the car with you. This insurance also covers the medical costs of any passengers without insurance or with a high deductible health insurance.
Comprehensive coverage for your commercial vehicles is designed to pay for the expenses of repairing or replacing your own vehicle after an accident or other non-accident covered loss occurs, and for paying your drivers’ medical expenses.
Uninsured and Underinsured Motorists Coverage
Uninsured and underinsured motorists’ coverage covers the costs of an auto accident if the driver is at fault and has insufficient insurance to pay for the damages. You also have the option to include more riders or non-compulsory coverage types to your public transportation insurance.
You can also obtain additional liability coverage called umbrella insurance. Umbrella insurance can significantly increase the limits on your liability coverage limits to protect your transportation company from liability claims resulting from a lawsuit.
So, Should You Get All These Insurance Coverages?
If all types of insurance coverages pertain to you, you should consider opting for them all. Out of all these, the first four insurance coverages are the most important — liability, collision, medical payments, and comprehensive coverage.
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