Armored cars are designed to provide added protection to its occupants, especially when transporting valuable assets. As such, the insurance requirements for these types of vehicles are different from regular cars. In this article, we will discuss the necessary insurance coverage for armored cars, as well as the factors that affect their insurance premiums.
Liability Insurance
Liability insurance is mandatory for all types of vehicles, including armored cars. This type of insurance coverage protects the vehicle owner from financial obligations resulting from accidents where the armored car is at fault. Liability insurance covers bodily injury and property damage liability. The minimum coverage requirements for liability insurance vary from state to state, so it’s essential to check with your local DMV to ensure compliance.
Comprehensive Insurance
Comprehensive insurance offers protection against theft, vandalism, and other non-collision-related incidents. Since armored cars are often used to transport valuable assets, comprehensive insurance is highly recommended to protect against potential losses. This type of insurance coverage is not required by law, but it’s a smart investment to make.
Collision Insurance
Collision insurance covers damages resulting from collisions with other vehicles, objects, or animals. Armored cars are designed to withstand significant impacts, but accidents can still happen. Collision insurance is not mandatory, but it’s highly recommended, especially for armored cars that are frequently used.
Underwriting Factors
The cost of insuring an armored car is affected by several factors, including the vehicle’s value, the intended use of the vehicle, the driver’s age and driving history, and the location where the vehicle is operated. Insurers also consider the level of security measures installed in the armored car, such as bullet-resistant glass, reinforced doors, and surveillance cameras. The more security measures the vehicle has, the lower the insurance premium will be.
Conclusion
Armored cars require specialized insurance coverage to protect against potential financial losses resulting from accidents or theft. Liability insurance is mandatory, while comprehensive and collision insurance are highly recommended. The cost of insurance premiums is affected by various factors, including the vehicle’s value, intended use, and security measures. By understanding the insurance requirements for armored cars, vehicle owners can ensure that they have adequate coverage to protect their investment.
