MONDAY, JULY 19, 2021
Commercial auto insurance is designed to protect your business’ vehicles in case of an accident or damage. A lot of the coverages available under commercial auto insurance are similar to those available under personal auto insurance, but unfortunately, this also means that this insurance faces similar exclusions and restrictions.
As a rule, regular engine failure or malfunction is not covered under commercial auto insurance. However, there are few exceptions.
What Caused the Engine Problem?
One of the few exclusions to this rule is the cause of the engine problem. Normal wear and tear are not covered under commercial auto insurance, nor does it cover manufacturing errors. It will, however, cover issues with the engine if those issues can be traced back to a recent accident.
For example, if one of your employees gets in an accident and a few weeks after repairs, the engine begins acting up, you may be able to reopen the claim and receive compensation.
Keep in mind that only covered accidents will be included. In order to have the highest chance of having your commercial vehicle engine covered, you should carry full coverage insurance. A full coverage commercial auto insurance policy should include:
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Comprehensive Coverage: Comprehensive coverage provides compensation for damages to the vehicle caused by fire, wind, hail, lightning, smoke, theft, vandalism and other incidents.
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Collision Coverage: Collision coverage provides compensation for damages to the vehicle caused by a collision with another vehicle or object.
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Liability: Liability insurance covers bodily injury and property damage the driver may cause someone else while operating the insured vehicle.
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Medical Payments Coverage: Medical payments coverage covers medical bills the driver and their passengers may face after an accident.
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Uninsured/Underinsured Motorist Coverage: This insurance covers damages that occur in an accident involving another driver who is not carrying insurance.
For example, say one of your drivers is involved in a wreck normally covered under collision insurance and the engine is damaged. If your policy doesn’t have collision insurance coverage, you will not receive compensation to any damages to the vehicle, including issues with the engine.
How Much Does It Cost to Replace a Commercial Vehicle Engine?
The cost of replacing an engine is notoriously high, though it varies per vehicle. In general, you could be looking at $4,000 to $6,000 for a new engine. This is why proper care and maintenance are crucial.
Be sure to speak with an insurance agent about fully protecting your business’ vehicles in case of an accident.
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