Protecting Your Fleet: What to Know About Cargo Van Insurance

How Cargo Van Insurance Can Help Protect Your Vehicle Fleet

Many business owners prefer cargo vans because they are affordable for delivery operations while keeping products safe and secure. However, despite this increased safety, they are not without risk. A vehicle accident on the road can cost your business thousands of dollars in paying for the damage. Investing in the right type of commercial vehicle coverage for the job is prudent to maximize your vehicle’s safety.

What is Van Insurance?

When we talk about van insurance, we talk about a policy that protects your vehicles from various liabilities incurred during operations. Your delivery vehicle can cause property damage and wrack up medical bills for you, your workers, and others from vehicle accidents. 

According to the CDC, work vehicle crashes cost business owners over $39 billion in just the year of 2019. Insurance for your cargo van is customizable with many different types of coverage; the following policies are the most common ones.

Auto Liability Commercial Vehicle Coverage

The first part of the commercial auto coverage for your van is called auto liability. If you are found at fault in an accident, you will be thankful for this coverage that will help you pay bodily injury costs like medical bills and property damage like damage to buildings and other vehicles. 

An auto liability policy that covers bodily injury and property damage for your cargo van is called a split-limit policy. With a split-limit policy, each type of damage is covered up to the policy amount. Another type of auto liability policy that covers both types of damage under one limit is called a single-limit policy. Below is a comparison of the auto liability policy requirements in each state currently.

State Bodily Injury Liability Coverage Per Person Bodily Injury Liability Coverage Per Accident Property Damage Liability Per Accident
Alabama $25,000 $50,000 $25,000
Alaska $50,000 $100,000 $25,000
Arizona $25,000 $50,000 $25,000
Arkansas $25,000 $50,000 $25,000
California $15,000 $30,000 $5,000
Colorado $25,000 $50,000 $15,000
Connecticut $25,000 $50,000 $25,000
Delaware $25,000 $50,000 $10,000
Florida $10,000 $20,000 $10,000
Georgia $25,000 $50,000 $25,000
Hawaii $20,000 $40,000 $10,000
Idaho $25,000 $50,000 $15,000
Illinois $25,000 $50,000 $20,000
Indiana $25,000 $50,000 $25,000
Iowa $20,000 $40,000 $15,000
Kansas $25,000 $50,000 $25,000
Kentucky $25,000 $50,000 $25,000
Louisiana $15,000 $30,000 $25,000
Maine $50,000 $100,000 $25,000
Maryland $30,000 $60,000 $15,000
Massachusetts $20,000 $40,000 $5,000
Michigan $20,000 $40,000 $10,000
Minnesota $30,000 $60,000 $10,000
Mississippi $25,000 $50,000 $25,000
Missouri $25,000 $50,000 $25,000
Montana $25,000 $50,000 $20,000
Nebraska $25,000 $50,000 $25,000
Nevada $25,000 $50,000 $20,000
New Hampshire $25,000 $50,000 $25,000
New Jersey $15,000 $30,000 $5,000
New Mexico $25,000 $50,000 $10,000
New York $25,000 $50,000 $10,000
North Carolina $30,000 $60,000 $25,000
North Dakota $25,000 $50,000 $25,000
Ohio $25,000 $50,000 $25,000
Oklahoma $25,000 $50,000 $25,000
Oregon $25,000 $50,000 $20,000
Pennsylvania $15,000 $30,000 $5,000
Rhode Island $25,000 $50,000 $25,000
South Carolina $25,000 $50,000 $25,000
South Dakota $25,000 $50,000 $25,000
Tennessee $25,000 $50,000 $15,000
Texas $30,000 $60,000 $25,000
Utah $25,000 $65,000 $15,000
Vermont $25,000 $50,000 $10,000
Virginia $25,000 $50,000 $20,000
Washington $25,000 $50,000 $10,000
West Virginia $25,000 $50,000 $25,000
Wisconsin $25,000 $50,000 $10,000
Wyoming $25,000 $50,000 $20,000

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Discover more about commercial auto and commercial vehicle coverage in our comprehensive breakdown.

Collision Coverage

Another critical component of your van insurance is collision coverage. As you can tell from the name, it protects your vehicle against many types of collisions, including:

  • Hitting another vehicle on the road

  • Colliding with a stationary object like a pole or barrier

  • Striking a parked vehicle

  • Accidents where your van has driven off the road

Comprehensive Coverage

The comprehensive part of cargo van insurance protects your vehicle from other types of damage not included in collision coverage. This differs from contingent cargo van insurance, which covers goods not being delivered on time. Instead, it refers to the wide variety of covered damage outside collisions. With comprehensive coverage, you can get help paying for incidents like:

  • Your vehicle getting stolen

  • Hitting an animal

  • Weather damage

  • Damage from fires

  • Substantive damage from a falling object like rocks or debris

Is Fleet Protection a Good Option For Covering My Cargo Vans?

Yes, if you have multiple cargo vans and other vehicles, commercial fleet protection is essential. The term for an insurance policy that covers a range of vehicles instead of just a single vehicle is fleet protection. Typically, you need at least two vehicles to qualify for this coverage. Some fleet protection companies may have a higher minimum vehicle limit. Buying this coverage has several advantages compared to relying on a single policy for each van.

  • Cost-effectiveness: Fleet insurance saves you on insurance premiums compared to buying separate policies for all your vehicles.

  • Simplified Claims: In the event of an accident, making a claim is much easier compared to filing claims with multiple policies or insurers.

  • Addresses Your Unique Situation: If you own different kinds of vehicles, it may be tricky to find a policy that maximizes your benefits. With fleet insurance, this is less of a worry because everything is covered under one umbrella.

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What Are Some Other Types of Vehicle Coverage To Consider?

In addition to the standard types of van insurance coverage, you may need additional types of vehicle coverage. Other options to consider for your cargo van fleet include:

  • Medical Payments: In some states, you can purchase medical payment coverage. This allows you to cover injuries to your drivers when your van is involved in an accident.

  • Uninsured Motorist Coverage: This policy can cover bodily injury or property damage that another driver can’t cover because they don’t have insurance. It is also useful if a hit-and-run driver flees the scene before your driver can get their insurance information.

  • Underinsured Motorist Coverage: Similar to uninsured motorist coverage, you can cover the difference for another driver’s insufficient policy with this coverage. This underinsured driver may not have a high enough limit on their insurance to cover what they are responsible for.

  • Personal Injury Protection (PiP): Some states use a no-fault insurance system for vehicle accidents. In these states, you need a personal injury protection policy when an accident occurs, which pays out regardless of the party at fault for the accident. PiP helps pay medical bills, funeral expenses, and lost wages. Your personal injury protection policy will not cover property damage.

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