Do You Need Commercial Car Insurance?

Do you own your own business? It’s very possible that you could benefit from commercial car insurance! No matter how big or small your company is, there are many risks that affect business owners who are using their vehicles for work, and if you only have personal auto coverage you may not have adequate coverage. Have you ever wondered if you need commercial car insurance? Wonder no more! Let’s look over some reasons you may need commercial car insurance, and if you answer “yes” to any of the following questions, you can think more about picking up a policy:

  • Do you use any of the vehicles you own to pick up or deliver goods, including supplies/materials/newspaper/food, or for messaging services?
  • Do you use any of your vehicles to transport people, such as clients, employees, independent contractors, etc.?
  • Do any of your vehicles’ titles list your business/corporation/partnership/DBA as the registrant?
  • Do any of your employees, or anyone not listed as a driver on your policy, drive any of your vehicles (regularly or occasionally)?
  • Do you lease or rent any of your vehicles to others?
  • Do any of your vehicles have a gross weight over 10,000 lbs, or do any of your vehicles have a rated load capacity over 2,000 lbs?
  • Do any of your vehicles have snowplowing equipment, cooking/catering equipment, bathrooms, altered suspensions, hydraulic lifts, or racing equipment?
  • Do any of your vehicles have equipment installed on them, such as ladder racks or permanent toolboxes that are used for your business?

Commercial Car Insurance Vs. Personal Auto Insurance

The biggest distinction between personal and commercial car insurance is the purpose of the coverage. Businesses have way more to risk in terms of liability than individuals do. In addition to additional liability coverage, commercial car insurance policies cover:

  • Any Auto Liability – extended coverage to protect your current commercial vehicles, new vehicles, and any hired/non-owned vehicles.
  • Trailer Interchange Insurance – coverage for non-owned trailers that you haul for business purposes.
  • Rental Reimbursement with Downtime – covers the cost of temporarily replacing an inoperable commercial vehicle.
  • Single-Deductible Options – if you haul a trailer or any other specialized equipment for work, you can extend your coverage to include those items in addition to your vehicle, so that when you have to file a claim, you only pay one deductible to cover both.
  • Individual Named Insured Coverage – extends your commercial coverage to protect you when you’re driving a vehicle that you don’t own.
  • Non-Owned Vehicle Coverage – protects you, and anyone who works for you, when driving vehicles that your company doesn’t own.

When Personal Car Coverage Falls Short

Even if you use your car for personal activities, such as going to the grocery store, going out with friends, or going on road trips, if your car is also used for work purposes beyond commuting, your car insurance may consider that vehicle a commercial one. Due to the risks involved with commercial vehicles, car insurance companies differentiate policies due to the liability attached to the activities for which the car is used. Commercial car insurance policies keep the unique needs of commercial use vehicles in mind, which exceed the common situations that arise for private citizens on the road. If you file a claim through your personal auto insurance, but were using the car for work purposes at the time of the accident, your claim may be denied because you were violating the terms of your personal car insurance policy.

If you’re self-employed or a small-business owner, you should discuss your options with an insurance company to see if you’re adequately covered for your daily purposes. Insurance Quote Online is your one-stop shop to finding policy quotes that fit your personal needs, to use your site to find yours today!

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