If you’re a Californian business owner who uses vehicles for commercial purposes, it’s important to know if you need commercial auto insurance. This type of insurance is different from personal auto insurance because it provides higher levels of coverage. So, is commercial auto insurance required in California? Let’s delve into the details.
Is Commercial Auto Insurance Required in California?
California law mandates all commercial vehicles to carry Commercial Auto Insurance. This law applies to any motor vehicle that is owned, leased, and hired by the company or used for business purposes, including cars, vans, and trucks.
In California, the coverage required for commercial vehicles varies depending on the vehicle’s seating capacity (see table below).
| Seating Capacity | Minimum Coverage Required |
| 7 or less | $750,000 |
| 8 to 15 | $1,500,000 |
| 16 or more | $5,000,000 |
How Do I Know if I Need Commercial Auto Insurance?
If you or your employees are using your vehicle for business tasks, to transport goods, people, or providing services for a fee, then you need commercial auto insurance.
Once you have determined that you need Commercial Auto Insurance, It’s important that you speak to an insurance agent to make sure you’re getting the right type of coverage for your specific business needs.
If an accident happens while a vehicle is being used for business, it can become a legal nightmare without proper insurance coverage. A business owner can be held liable if an employee is involved in an accident while on the job, even if the employee is not at fault. Additionally, the business can be sued by the third party for personal injury or property damage due to an accident.
Do You Have Insurance Questions? Contact Our Experts Today
Without adequate commercial auto insurance, a business owner would have to pay for these expenses out of pocket. Contact our experts at Carter Bradley Insurance to get the personalized coverage your organization needs.
Wrapping It Up
All commercial vehicles entering California are required to carry commercial auto insurance coverage according to their seating capacity.
The legal and financial repercussions of not having commercial auto insurance can be significant, and you don’t want to take a gamble on your business’s continued success.
That’s why it’s always best to speak to an insurance agent to determine the right type of coverage for your unique business needs.
Need Commercial Auto Insurance? Carter Bradley Insurance Solutions Can Help
At Carter Bradley, our team is solely focused on your unique needs to find the best prices and coverage you require for your business, home, auto and life insurance.
Contact us today by email at info@carterbradleyinsurance.com, by phone at (951) 547-4240, or through our social media accounts on Facebook, Twitter, and LinkedIn.
