Commercial auto insurance vs personal auto insurance

Commercial auto insurance vs personal auto insurance

“Oh  no…. Why didn’t my insurance company pay my claim under my personal auto policy?  Was I supposed to have special coverage for the autos I use in my business?”

If you own a business, are self-employed or have any vehicles titled in the name of your business…please spend the time to review this important information!

Do I need commercial auto insurance?

If you answer, “yes” to any of the questions below, you probably need commercial auto insurance.

  • Do you or anyone in your business use your vehicles to deliver goods or services?
  • Do you use your vehicles for delivery or taxi services?
  • Are any of your vehicles owned, leased or titled in the name of your business?
  • Are any of your autos rented or leased to other businesses or individuals?
  • Do any of your employees not listed on your policy drive your business’s vehicles on a regular basis?
  • Do you own specialty vehicles that include plowing equipment or hydraulic lifts?
  • Do you own utility vehicles or vans with a rated load capacity?
  • Do your vehicles have ladder racks, or other equipment used regularly in the course of your business?

As far as insurance companies are concerned, if you use your personal car for work purposes, other than commuting back and forth to your home-base of work, your car should be classified as a commercial vehicle!

Bottom line, if you transport commercial goods or material and you are in an accident, consider yourself in line for the bad news your personal auto policy may not cover the accident.

Businesses come in all sizes.  Regardless of the size, from small one person companies to mid sized contractors and beyond, businesses that use their owner’s personal autos for work are surprised to find out that their personal auto insurance policy may not cover them sufficiently… or at all!

What is the difference between commercial auto insurance vs personal auto insurance

Commercial auto insurance should be considered for even small business owners and self employed business owners, as it provides the proper coverage to repair or replace a company owned vehicle damaged in an accident, as well as paying the claims of any third-party that sustains property damage and/or is injured in the accident that your company is responsible for. Having the appropriate commercial policy will provide for better coverage for you, your employees/drivers and the goods/equipment you may be hauling. 

There is an increased liability that arises in your day-to-day business operations which expands beyond your personal auto policy limits. Generally, commercial auto insurance will have higher liability limits than personal auto coverage.  Commercial auto coverage can also extend the coverage to any new vehicles that your company purchases and can extend coverage to “non-owned vehicles” used in your business.

There are many options you can include with your commercial package- to name a few: rental reimbursement with downtime, trailer insurance, single-deductible options (covers ALL items you haul under one deductible). Commercial policies sometimes allow for more attractive deductibles when covering pieces of equipment damaged reported as damaged in a claim.

Commercial auto insurance is available to almost all businesses and vehicle types.  Let InsuranceTrak Services help you decide which type of auto insurance is best for you personally and for your business.

By Craig Bruno