Do I need a commercial auto insurance policy?

February 27, 2013

Do I need a commercial auto insurance policy?

Photo Credit: dok1 (Creative Commons)

Many small business owners believe that their personal auto insurance policy will cover their car for both personal and work uses. But, in reality, they may run into problems when it comes time to file a claim.

Commercial auto insurance and personal auto insurance may seem the same, but they actually differ in many technical respects.

In general, whether or not you need to purchase a commercial auto insurance policy depends on the type of driving you do. The best way to determine the right course for you is to talk with an independent insurance agent. In the meantime, here are some general guidelines to help you get started.

If any of the following statements apply to you, you may need to purchase a commercial auto insurance policy:

  • You use your vehicle to pickup or deliver business-related goods (i.e. food, newspapers, supplies, pizza, etc.).
  • Your vehicle is registered or titled to a business, partnership, or corporation.
  • You use your vehicle as a taxi, limousine, or other transportation service.
  • Employees or non-listed drivers operate your vehicle on a regular or occasional basis.
  • Your vehicle is a van, pickup, or utility vehicle with a gross weight exceeding 10,000 pounds and/or has a rated load capacity of over 2,000 pounds.
  • Your vehicle is equipped with specialized equipment (i.e. cooking or catering equipment, snowplowing equipment, altered suspensions, etc.).

These are just a few situations where a commercial auto insurance policy would probably be necessary to ensure coverage in the event of an accident.

Contact your independent insurance agent to find out if you have the right coverage for your commercial vehicle.

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