Standard car insurance can’t usually apply to vehicles owned or used by businesses. Instead, drivers need commercial auto coverage. If you register the vehicle in Indiana, several regulations mandate the policy that you must buy. Depending on the type of vehicle you use, your state-required coverage might vary. Take a closer look to better understand what coverage you need.
Understanding Commercial Car Insurance Requirements
Indiana is an at-fault car insurance state. That means if you cause a wreck, then your auto policy pays for the damage or injuries of others (who were not passengers in your car). Usually, you use liability insurance to do so. The coverage will usually pay for the property damage and injuries of others (up to the policy’s limits).
Yet, factors like the vehicle weight and cargo can influence your coverage requirements. So, commercial vehicle owners often have to consider many factors to figure out which rule applies to them.
A company-owned car, or even a personal vehicle used for work, requires commercial auto insurance. The minimum limits are:
- Bodily Injury Liability Coverage: $25,000 per person/$50,000 per accident
- Property Damage Liability Coverage: $25,000 per accident
- Uninsured Motorist Bodily Injury Coverage: $25,000 per person/$50,000 per accident
- Uninsured Motorist Property Damage Coverage: $10,000 per accident
- Underinsured Motorist Bodily Injury Coverage: $50,000 per person/$50,000 per accident
Yet, if you provide passenger or delivery services, then further regulations might apply. Always keep that factor in mind when searching for coverage.
Passenger van insurance requirements mandate a combined single limit (CSL) liability policy. CSL policies do not divide liability coverage into bodily injury/property damage categories. The limits required vary by passenger capacity:
- For-Hire Vans for 1 – 15 passengers: $1.5 million
- For-Hire Vans for 16+ passengers: $5 million
- Contract carriers that transport railroad employees: $5 million
Contractors Carrying Freight
When carrying cargo, your insurance requirements will vary based on several factors determined by Indiana law and the Federal Motor Carrier Safety Administration and local law. Both weight and the type of cargo you carry might play a role:
- Fleets including vehicles weighing 10,000 lbs. or less: $300,000 CSL
- Fleets including vehicles weighing 10,001 lbs. or more: $750,000 CSL
- Vehicles transporting hazardous substances (regardless of weight): $1 million or $5 million CSL depending on the type of substance.
Additionally, some freight transporters must carry surety bonds and inland marine insurance. These will help you to achieve proof of financial responsibility for items in your care.
Don’t forget, you can also buy extra coverage for your vehicles, such as physical damage insurance, medical payments insurance for driver and passenger injuries, and other perks. Your policy can offer ample protection when built correctly. Therefore, don’t hesitate to let your agent help you determine the right policy for you.
Also Read: Getting Commercial Auto Liability Insurance