Suppose you have a truck that you regularly use for your business or have invested in any vehicle to conduct your business. In that case, you might not realize that personal auto insurance is not the right coverage you need. Instead, what you need is commercial auto insurance or also known as business auto insurance.
Should you be carrying a commercial auto insurance policy for your business? The answer depends on the vehicle types you and your employees use in the daily course of the business, as well as what they’re used for.
How Do They Differ?
Personal auto insurance covers your daily, non-business driving. However, as soon as you use your vehicle for business matters, you’ll need commercial auto insurance calculated differently from personal auto insurance.
On the other hand, commercial auto insurance may offer higher coverage limits, such as property damage, bodily injury, medical payments, uninsured motorist coverage, comprehensive physical damage, collision, hired auto, non-owned auto, and symbol one liability when needed by contract.
Which Is Better?
car insurance
It depends. It can also get tricky when you use one vehicle for both personal and commercial purposes.
Suppose you bought a vehicle specifically for commercial use, such as a delivery truck, a vehicle for transporting employees to job sites, or a car to transport clients. In that case, it’s best to have it insured under a commercial auto insurance policy.
This insurance type is necessary when you use your vehicle for transporting goods or people in exchange for a fee. The same goes for when you need it to conduct services, such as a mobile pet cleaning van, hauling special tools, or a trailer running any business.
You should also have this insurance if your employees drive the vehicle as part of the business or if they drive their own cars as part of the business. Moreover, renting or leasing cars for business use also requires a commercial auto policy.
One of the rare instances that you don’t need commercial auto insurance is when you use your vehicle to commute from and to your office.
So if you’re trying to figure out when you don’t need commercial auto insurance, ask yourself this: Do you regularly use your vehicle to operate your business? If yes, you should definitely get in touch with an agent and discuss your commercial auto insurance options.
Conclusion
Like personal auto insurance, a commercial auto insurance policy can be structured to offer sufficient financial protection against personal injury. It can also be structured to cover other liabilities, such as collisions and uninsured motorists. You can also have comprehensive coverage that protects against natural damage to your vehicles, such as fire, hail, and flood.
So the bottom line is that if you’re regularly using your vehicle for business, you’ll benefit more from insuring it under commercial auto insurance. You’ll get higher policy limits, and you can safeguard your business assets from lawsuits and other liabilities compared to personal auto insurance.
Quesurance is committed to helping customers save money, businesses reduce risk, and families protect their financial future. We protect our clients just like how we protect our families. We provide auto insurance, home insurance, renter’s insurance, business insurance, and more!
Call us at (866) QUE-2121 for free auto insurance quotes.
