New Jersey requires all vehicles registered in the state to have liability insurance coverage, including commercial vehicles. If you own a business that uses commercial vehicles, you'll need commercial auto insurance to protect your business against financial losses resulting from accidents.
The amount of coverage required for commercial auto insurance in New Jersey depends on the weight of your commercial vehicle. For example, vehicles with a gross vehicle weight rating of 10,000 pounds or more require a minimum of $750,000 in liability coverage, while vehicles with a weight rating of fewer than 10,000 pounds require a minimum of $500,000 in coverage.
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In addition to liability coverage, commercial auto insurance policies in New Jersey can also include coverage for collision, comprehensive, uninsured/underinsured motorist, and medical payments. To get a commercial auto insurance policy in New Jersey, you'll need to contact an insurance agent or broker who specializes in commercial insurance.
They can help you determine the appropriate coverage levels for your business and provide you with quotes from multiple insurance companies.
Why is commercial auto insurance in New Jersey important?
Commercial auto insurance is important in New Jersey because it provides coverage for vehicles used for business purposes, which typically have a higher risk of accidents and other incidents than personal vehicles.
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Here are some reasons why commercial auto insurance is important in New Jersey:
Protection for your business
Commercial auto insurance provides protection for your business by covering the costs of damages, injuries, or other losses resulting from an accident involving one of your vehicles. This can help protect your business assets and avoid financial loss.
Legal Requirements
In New Jersey, businesses that use vehicles for work purposes are required to carry commercial auto insurance. Failure to comply with this requirement can result in fines or other legal consequences.
Additional coverage options
Commercial auto insurance policies typically offer additional coverage options that are not available with personal auto insurance policies. For example, you may be able to purchase coverage for your employees who drive your vehicles, or for goods or equipment that are transported in your vehicles.
Risk management
Commercial auto insurance can help you manage the risks associated with using vehicles for business purposes. By working with your insurance provider to identify potential risks and minimize them, you can help prevent accidents and other incidents from occurring in the first place.
Overall, commercial auto insurance is an important investment for any business that uses vehicles for work purposes in New Jersey. It can provide valuable protection and peace of mind for you and your employees.
Who needs a commercial auto insurance policy in New Jersey?
In New Jersey, commercial auto insurance policies are generally needed by businesses that use vehicles for work purposes. This includes but is not limited to:
- Companies that own or lease vehicles for business purposes, such as delivery trucks, service vans, or company cars.
- Individuals or sole proprietors who use their personal vehicles for business purposes, such as driving to meetings or making deliveries.
- Commercial transportation companies, including taxi and limousine services, ridesharing drivers, and trucking companies.
- Non-profit organizations that use vehicles for their operations, such as transporting goods or people.
It's important to note that New Jersey law requires all drivers to carry a minimum amount of liability insurance coverage, regardless of whether they are driving for personal or commercial purposes. However, the coverage requirements may be higher for commercial vehicles depending on the nature of the business and the types of vehicles being used.
It's best to consult with an insurance agent to determine the appropriate coverage for your specific business needs.
New jersey commercial auto insurance?
First, let's define what is considered a commercial vehicle in New Jersey. A commercial vehicle is any vehicle used for business purposes, such as delivering goods or transporting people for hire. This can include trucks, vans, buses, limousines, taxis, and other types of vehicles used for business purposes. |
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New Jersey requires that all registered vehicles, including commercial vehicles, have liability insurance coverage. Liability insurance covers damages or injuries you may cause to others in an accident. The minimum liability coverage requirements for commercial vehicles in New Jersey are:
- $15,000 for bodily injury or death of one person in an accident
- $30,000 for bodily injury or death of more than one person in an accident
- $5,000 for property damage in an accident
For commercial vehicles with a gross vehicle weight rating (GVWR) of 10,000 pounds or more, New Jersey requires a minimum of $750,000 in liability coverage. For commercial vehicles with a GVWR of less than 10,000 pounds, the minimum requirement is $500,000 in liability coverage.
In addition to liability coverage, commercial auto insurance policies in New Jersey can also include coverage for the following:
Collision
This coverage pays for damage to your commercial vehicle in the event of an accident, regardless of who is at fault.
Comprehensive
This coverage pays for damage to your commercial vehicle from non-accident incidents such as theft, vandalism, or natural disasters.
Uninsured/Underinsured Motorist
This coverage protects you if you're in an accident with someone who doesn't have enough insurance to cover the damages.
Medical Payments
This coverage pays for medical expenses for you and your passengers in the event of an accident.
When shopping for commercial auto insurance in New Jersey, it's important to work with an insurance agent or broker who understands the unique needs of your business and can help you select the appropriate coverage levels.
They can also help you compare quotes from multiple insurance companies to find the best policy for your budget.
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Discounts in New Jersey on Commercial Insurance?
Commercial auto insurance providers in New Jersey may offer various discounts to help businesses save money on their premiums. Here are some common discounts that may be available:
Multi-vehicle discount
If your business owns or leases multiple vehicles, you may be eligible for a multi-vehicle discount.
Safe driver discount
Some insurance providers offer discounts for businesses that have a good driving record and no recent accidents or violations.
Driver training discount
If your employees who drive your commercial vehicles have completed a driver training program, you may be eligible for a discount.
Safety equipment discount
If your commercial vehicles are equipped with safety features such as anti-lock brakes, airbags, or backup cameras, you may be eligible for a discount.
Business owner's policy (BOP) discount
Some insurance providers offer discounts to businesses that bundle multiple insurance policies, such as a commercial auto policy and a general liability policy, into a single BOP.
Payment discount
Some insurance providers offer discounts to businesses that pay their premiums in full or set up automatic payments.
It's important to note that not all insurance providers offer the same discounts, and the availability of discounts may vary based on your specific business and the coverage options you choose. Be sure to ask your insurance provider about available discounts and how they can help you save on your commercial auto insurance premiums.
New Jersey commercial auto insurance costs?
The cost of commercial auto insurance in New Jersey varies depending on several factors, including the size of your business, the types of vehicles you own or lease, the number of employees who drive your vehicles, and the coverage limits and deductibles you select.
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Other factors that may impact the cost of your commercial auto insurance in New Jersey include:
Driving record
If your business has a poor driving record with a history of accidents or violations, your insurance premiums may be higher.
Location
The location of your business can impact your insurance premiums, with businesses in urban areas typically paying more due to the higher risk of accidents and theft.
Vehicle usage
The frequency and distance of your commercial vehicle usage can impact your insurance premiums, with businesses that use their vehicles more often or for longer distances typically paying more.
Type of business
Certain types of businesses, such as those in high-risk industries like construction or delivery, may have higher insurance premiums due to the increased risk of accidents.
In general, the cost of commercial auto insurance in New Jersey can range from a few hundred dollars to several thousand dollars per year, depending on the factors mentioned above.
It's important to shop around and compare quotes from multiple insurance providers to ensure you're getting the coverage you need at a price that fits your budget.