There were an estimated 4.57 million road accidents in the United States last year. Those numbers make it clear that accidents happen quite frequently.
If you are running a paratransit service, then you need to make sure that you have insurance coverage should anything go wrong while your vehicle is transporting passengers.
However, while you may have heard of paratransit insurance, you may have questions about how this type of insurance coverage works and why it is essential. This guide will help bring clarity to your questions!
1. Liability Insurance
Liability insurance is one of the most important forms of paratransit insurance that you can have. In fact, in many states it is mandatory that you have this type of insurance. Liability insurance pays for any injuries or damages that may happen to other motorists should your vehicle be responsible for an accident. You can get this insurance in two different forms:
Bodily Injuries
The insurance term “bodily injury” is used when your vehicle collides with another and injures the occupants of the vehicle. Liability insurance pays for their medical expenses as well as any physical therapy they may need.
It may also pay for the victim’s loss of work time whenever applicable. If fatal accidents occur, funeral expenses will be covered.
Property Damage
If your paratransit vehicle is responsible for an accident, liability insurance will pay the cost of repairing or buying back the other party’s damaged vehicle.
2. The Importance Of Physical Damage Insurance
This type of insurance is another must if you are in the paratransit business because it covers your vehicle. If you have an accident you will either need to replace or repair your vehicle, and physical damage insurance will cover the costs.
If you have not finished paying for the vehicle, or if it is leased, your insurance company will still give you coverage. This type of insurance comes in three forms:
Comprehensive Physical Damage
This is a must-have insurance coverage because it covers you against all the little day to day risks you face. These include:
- vandalism
- theft
- burglary
- natural disasters
Your vehicle will be fully covered no matter where or when these incidents occur.
Collision Damage
This type of insurance is good for any form of collision. It will also cover collisions that are not vehicle-to-vehicle in nature. For example, your vehicle may collide into a fence, a mailbox or a light post. If this happens, your insurer will have to pay for the repairs to your vehicle.
Combined Additional Coverage
Coverage of this nature covers fire, theft and other specific types of physical damage. The specifics of the type of damage that will be covered are clearly listed on the policy.
3. Paratransit Insurance Against Underinsured Motorists
Another type of coverage that is a must for your paratransit business is uninsured (or underinsured) collision coverage. This type of insurance covers the cost of repairs for your vehicle should it get damaged by a motorist that has no insurance coverage or limited insurance coverage.
It also covers any bodily injuries that may occur to your driver and any passengers that are in the vehicle when the accident occurs.
Final Thoughts
Paratransit insurance is a must if you want to ensure the financial stability and security of your business. When you are constantly on the road there is a high probability that an accident will occur at some point, and you always want to be prepared for it.
If you would like more information on paratransit insurance then please contact us. We can help you secure your vehicles with the proper insurance coverage!
