Commercial Auto Insurance

Do You Need Commercial Car Insurance Coverage?

It’s important to get the right insurance policy for your vehicle. Whether you have a car for personal use, business use, or commercial use, our insurance agents are here to find the policy that fits your needs. We work with dozens of insurance carriers to find you the best rates, but we also make sure your policy includes the cover option and limits you need.

How to Determine If You Need Commercial Auto Insurance

Insurance companies differentiate between private use, business use, and commercial use of your car. Your personal auto insurance policy only covers private use, which includes driving to and from work and using your car for errands and other private purposes.

If you’re an independent contractor or sole proprietor, you might use your car for business and private use. Business use means your car isn’t directly part of generating an income for you, but it is necessary to perform your job. For example, you might use your vehicle to see clients or customers.

When your vehicle is directly used to generate an income for your business, it is considered commercial use. Examples include transporting materials, products, or equipment, making deliveries to customers, or providing transportation to paying customers. If you own a small business and use your vehicle for anything other than commuting to the office, you probably need a commercial insurance policy.

What Business Auto Insurance Includes

Your commercial auto insurance policy includes many of the same coverages as a personal car insurance policy. You’ll have liability coverage, medical payments, collision and comprehensive coverage, and uninsured motorist coverage.

Your liability coverage is the most important part of your commercial vehicle policy. You want as much bodily injury and property damage liability coverage as you can afford. This portion will cover any expenses related to damage done to other property caused by your vehicle. The bodily injury and personal injury protection portions also cover any medical expenses for injuries sustained in a collision. The liability component of your commercial insurance policy protects your company’s assets.

Collision and comprehensive coverage are necessary to protect your company vehicle. If you or an employee cause an accident with a company vehicle, collision and comprehensive insurance will cover the cost of repairs to the car. Finally, your policy should include uninsured motorist coverage in case someone without insurance causes an accident that damages your company’s car or harms its driver.

FAQs about Commercial Auto Insurance

Why Do I Have to Have Commercial Auto Insurance If I Already Have Personal Auto Insurance?
Your personal auto insurance policy will only cover the costs of an accident if you’re using your car for the insured purposes. If you’re delivering a product to a customer and cause a collision, your insurance company will not pay for any damage you caused to the other car or your vehicle if you don’t have commercial auto insurance. You’ll have to pay potential legal fees out of pocket, too.

What’s the Difference between Commercial and Personal Auto Insurance?
Your personal auto insurance limits coverage to the personal use of your vehicle. If you use your car to generate an income or if the car performs an important part of your job, your personal auto insurance will not protect you in case of a claim. You need commercial insurance if you use your vehicle for business purposes.

Do I Need Commercial Auto Insurance If I Just Drive to the Work Site?
If you use your vehicle in any capacity other than commuting from your home to the office, you need to check with your insurance company. Driving your vehicle to the work site could constitute business or commercial use, especially if you’re a contractor or sole proprietor. Call us today and tell us about your specific situation, and we can let you know what type of policy you need.

Let’s Discuss Your Commercial Auto Insurance Needs

Work auto insurance or commercial auto insurance is a requirement if you use your vehicle for doing business or to generate income. Our insurance specialists are ready to help you find the right insurance policy for your needs to make sure you have adequate coverage. Reach out to our office today to get your quote.

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