Do I Need Commercial Car Insurance?
Do I Need Commercial Car Insurance?
When it comes to insuring vehicles, individuals usually purchase personal insurance, while businesses buy commercial auto insurance. Whether or not you should have commercial auto insurance varies greatly on how you use your vehicle. People who engage in certain business-like activities should contact their insurance company to see if they need to purchase additional insurance. Additionally, any small business owners who have employees dive vehicles as a part of the job need to look into commercial auto insurance as well.
Any personal vehicle that is used sometimes for business probably needs commercial vehicle insurance. It is true that some personal auto insurance may cover damage that occurs while using your car for business, you still need to check with your insurance provider. If you are unsure whether or not your policy covers your vehicle, you best option is to utilize the wealth of knowledge that your agent holds. Call your agent and ask them to review your policy and coverage with you. Don’t leave your coverage to chance.
If you use your car or truck for any type of business activity, you should consider purchasing commercial insurance for your automobile. Some examples of personal vehicles being used for business include: Food delivery services, catering services, door-to-door consulting service, day care van services, real estate agent and landscaping services should all look into commercial auto insurance policies.
Any vehicle that your business owns, leases or rents, needs to be covered by a commercial auto insurance policy. In most states it’s required to cover any financially responsibility if you or an employee is at fault in an accident. Basically, if you or your employees drive company vehicles or personal vehicles to conduct business, you most certainly need commercial auto insurance. A benefit of commercial vehicle policies is that they allow you to list anyone that you employ as a driver; this option is not always available with personal auto insurance. This way, any listed employee can drive the vehicle without getting into issues that may come up should they get into an accident.
Commercial auto insurance is also needed if you need more liability coverage than what a personal insurance policy would provide. If the vehicle is owned by a corporate partnership, used to haul tools or equipment weighing over more than 500 pounds, used to make deliveries, or is heavy enough to need state or federal filings you definitely need commercial auto insurance. Truckers should definitely look into commercial truck insurance. Because trucks require special training to drive and are much bigger vehicles, truckers are held more liable for damages. They need to make sure they are properly covered under a commercial policy.
If this applies to your business, or if you use your personal car for any sort of business activity, look into commercial auto insurance to protect yourself and your wallet.
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