If you own a vehicle used primarily for business, you may need a commercial auto insurance policy. It can cover vehicles used for these purposes:
You frequently drive to job sites.
Your farm-to-table delivery business literally requires that you drive to farms.
You’re a traveling pet groomer, and you drive to meet your furry clients.
You’re a landscaper, and you rely on your pickup truck to move that heavy lawnmower.
Commercial auto insurance isn’t just for big rigs, box trucks and other typical commercial vehicles. Everyday cars and pickup trucks can also benefit from commercial auto coverage.
Do I need commercial auto insurance?
Most states require commercial auto insurance for business-owned vehicles. Also, most personal auto policies provide limited or no liability coverage for business use.
For instance, if you mostly use your car to go grocery shopping and only occasionally for your business, you may not need commercial auto insurance. Options like a personal auto policy with limited business coverage or a hired and non-owned auto insurance policy may be right for you.
But what if I use my vehicle for both personal and business reasons?
Few businesses are offering the perks of a dedicated company vehicle these days. The lines between home and work are a lot more blurred, too.
If you have one car for all your transportation needs, you’re exposed to different risks when you’re driving for business versus personal purposes. So, if you’re doing a lot of business driving with your personal vehicle, you’ll want to look into commercial auto insurance.
If you have employees that operate your car, unlike a personal policy, a commercial auto insurance policy can also cover them up to the limits of the policy.
The difference between personal auto vs. commercial auto insurance
A personal auto insurance policy typically covers the owner of the vehicle and perhaps their immediate family members. If a friend borrows your car to pick up doughnuts, they most likely won’t be covered if an accident occurs. Check more with the help of best commercial insurance companies
Similarly, if an employee uses your vehicle to go for a coffee run, they wouldn’t be covered under a personal auto policy if they got into a fender bender on the way back.
Commercial auto insurance covers you, your employees, and the occupants of your vehicles.
What’s covered with commercial auto insurance?
Injury to you or an employee (medical payments)
Injury to someone who is not in your vehicle
Property damage
Towing, repairs and replacements after an accident
Rental reimbursement
Underinsured motorists (when another driver’s coverage isn’t enough)
Comprehensive coverage, including theft, vandalism, or weather-related damage
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