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  • Writer's pictureAmanda Bird

A Quick and Simple Guide to Commercial Motor Insurance

Many businesses send out their employees in company-owned vehicles for business purposes. For example, some drive company cars to attend meetings and generate new leads, while others transport products and materials.

Commercial motor insurance is a must when you often use vehicles in your company. nvolve

What is a commercial auto insurance policy, and why do you need it? This article will answer those questions and more.

What Is Commercial Motor Insurance?

Commercial motor insurance is an insurance policy that covers company-owned motor vehicles. It can cover many land vehicles, from cars and vans to motorbikes and trucks.

Commercial auto insurance is similar to fleet insurance since both protect business-owned vehicles. However, the distinction is between how many cars the policy can cover.

If your company owns less than fifteen vehicles, your coverage falls under commercial auto insurance. But when you have more than that under the company’s name, it will most likely need fleet insurance.

Although, insurance providers have varying definitions. That is why it is always better to check your insurance options with policy providers.

Why Is Commercial Auto Insurance Necessary?

Every vehicle in Australia must have Compulsory Third Party (CTP) insurance once a vehicle is registered. This is a standard for personal and company vehicles. However, a CTP is not the same as a commercial auto insurance policy.

CTP is an insurance policy that protects anyone injured in an accident where your vehicle is involved. In short, it does not cover incidents when car crashes are not included.

On the other hand, commercial car insurance policies provide protection from accident-related and non-accident related incidents. Therefore, you need a commercial car insurance policy on top of your CTP. This ensures that employees and company property are secured regardless of the circumstances.

What Does a Commercial Auto Insurance Policy Cover?

Different insurance companies offer varying policies that cover a multitude of incidents. However, most policies would provide protection against theft, collision damage, and property damage resulting from the accident.

However, not all insurance policies inherently cover damage against your vehicle and legal fees. That is why you need to work closely with your insurance broker about the specifics of your policy coverage.

What Does a Commercial Auto Insurance Not Cover?

Commercial car insurance policies are not all-cures. Therefore, you cannot expect your insurance to cover everything, especially if you are in the wrong.

This is why most insurance policies do not cover vehicles with unfit drivers. They do not have a driver’s license and drive under the influence of alcohol or drugs. Aside from this, most car insurance policies will not cover vehicles involved in time trials or motorsports.


Insuring all your company vehicles with CTP is a legal requirement. If you use cars or vehicles as part of your business, you must have the CTP at the very least. However, the CTP will not protect your company vehicle.

When you need an insurance policy to protect your company vehicle, you must have commercial motor insurance. These insurance policies can secure your car against damage and theft. Plus, depending on your policy, it can also help you pay for property damage, legal fees, and vehicle repairs.

New Wave Insurance is a reputable insurance broker that offers reliable commercial motor insurance in Gold Coast, QLD. Regardless of whether you are an entrepreneur with one company-owned car or a medium-sized business with several vehicles under your company’s name, we can help you. Book your free consultation today!

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