How to Know if You Need Commercial Auto Insurance

It can be tricky to determine when you need commercial auto insurance and when your personal auto insurance policy will suffice. Insurance companies consider commercial and personal policies to be two very different types of coverage. When a commercial insurance policy is created, the risks of the specific business are evaluated and the policy is written to address the distinctive needs and circumstances that may be encountered. A personal policy, on the other hand, is created to suit the needs of the average citizen.

A good rule of thumb is if you or your employees regularly use vehicles while on the clock you probably need to consider a commercial insurance policy.

When Personal Insurance Won’t Cover It

Most people don’t think twice about hopping into the car to drop off a company deposit at the bank, driving a client to an open house, or delivering supplies to a few office locations, but should an accident occur you might not be covered. People often assume if they are driving their personal car and have a personal car insurance policy they are covered, but if you file a claim for an accident that occurred while conducting business you could violate the terms of your policy.
A few examples of professions that often require commercial auto insurance are:

  • Contractors
  • Realtors
  • Plumbers
  • Electricians
  • Delivery drivers
  • Caterers
  • Tow truck drivers
  • Truckers

Auto Insurance Coverage for Business

At first glance commercial car insurance coverages sound similar to personal coverages, with familiar terms such as liability insurance, comprehensive, collision, and uninsured/underinsured. The differences are often reflected in the extent of coverage. Commercial policies generally have higher liability limits and provide other coverages including:

  • Non-owned vehicle coverage- Protects you and your employees when driving cars that are not owned by your business
  • Individual named insured coverage- Protects you when driving a vehicle you don’t own
  • Any auto liability- Extends liability coverage from existing commercial vehicles to any new vehicles you buy in the future
  • Single deductible options- Covers a variety of specialized equipment and only requires you pay your deductible once, even for multiple claims

The insurance experts at Invincia are here to help you evaluate your situation and find a commercial auto policy that’s right for you. Contact us today with questions about commercial car insurance or to get a quote.

2 Comments on “How to Know if You Need Commercial Auto Insurance”

  1. kiyel williams

    Wow, it seems extremely beneficial to have commercial insurance if you have employees driving company cars or using equipment that could injure them or someone else. You definitely want to make sure your insurance covers you and your business in any eventuality. I will have to talk to my friend about getting commercial insurance for his business. Thank you for the information!

  2. Kyler Brown

    I really appreciated this post about commercial insurance. I agree that it is tricky to determine when you need commercial auto insurance and when your personal auto insurance policy will suffice. This guide was very helpful though, so thanks for sharing this.

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