When you own an independent business or are self-employed, sometimes it can be difficult to decide if you need personal or commercial auto insurance. Many people make the mistake of thinking that commercial insurance is just for businesses. This is false - it depends on the type of vehicle you own, and how you use it. Some independent business owners may believe they don't need commercial policy, but they really do. Don't make wrong decisions because you aren't sure what you need; you could eventually regret it later.
Benefits of Commercial Auto Insurance
Commercial policies tend to have higher liability limits than a personal policies, and they can usually cover multiple vehicles. You can also have your employees and co-workers listed as covered drivers on your policy. Also, having a commercial insurance, when required, keeps you legal. This is enough of a reason to make sure you've got it right.
Personal Auto Insurance Might Exclude Coverage
Personal policies might exclude coverage if you're involved in an accident while using your vehicle for business. In general, if you use your vehicle for any type of business, you probably should have a commercial policy. Some examples of business use include delivery or transportation services, such as pizza and newspaper delivery, or using your vehicle to drive to multiple worksites or meet with clients every day.
Other Types of Commercial Insurance Coverage
It's a good idea for independent businesses to purchase Non-Owned auto insurance and Hired auto insurance.
Non-Owned auto insurance provides coverage to employees that occasionally use their personal vehicles for business purposes.
Hired auto insurance provides liability coverage for vehicles driven that you or your business do not own, such as rented vehicles.
Definitions and requirements for each type of policy can differ by state. Not all types of vehicles will be covered by a commercial policy, such as emergency vehicles and double-decker buses, so it's important to check with your insurance provider to see what types of vehicles can be insured.
It's always best to talk to a professional when buying insurance for your business. This can save you time and money while eliminating the hassle of having to dig for answers yourself. Most companies are more than willing to walk you through the process over the phone. Try to be prepared to be able to answer basic questions about your company and your vehicles when you decide to call. If you're not sure what type of information you'll need for a quote, a company representative will be glad to help you. You might be surprised how quickly you can become fully protected just by picking up the phone.
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