How Do I know if I need Commercial Auto Insurance?

How Do I know if I need Commercial Auto Insurance?
  • Post last modified:April 22, 2020
  • Post Category:Auto Insurance

If you are using your personal vehicle for work, then it can be quite confusing on whether or not you’re properly covered with your personal auto insurance policy. If you find yourself asking, “Do I need Commercial Auto Insurance?” then we wanted to take the time to explain to you how you can ensure that you are properly covered.

Do You Need Commercial Auto Insurance? Maybe.

If any of these situations apply to you, then we’ve got some news for you, you might just need commercial auto insurance to stay properly protected:

  • If you use your vehicle for delivery or pickup of supplies, materials, pizza, other food items, or newspapers
  • If you use your vehicle as a taxi service, livery service or limousine service
  • If your vehicle is leased or owned by a partnership or corporation
  • If your vehicle is leased or rented by others
  • If your vehicles are registered or titled to a business, corporation, or partnership
  • If your vehicle is a pickup, van, utility vehicle, or with a gross weight exceeding 10,000 pounds, or carry a load of over 2,000 pounds
  • If your vehicle is equipped with snow plow equipment, cooking/catering equipment, bathrooms, altered suspensions, hydraulic lifts, or racing equipment
  • If your vehicle has equipment such as a ladder rack or permanent toolbox
picture of the inside of a vehicle with a hardhat and ear protection on the dashboard

The Difference Between Commercial and Personal Auto Insurance

Even after reviewing the list, you may still be asking yourself, “Do I need Commercial Auto Insurance?” If that is the case, we want to help you understand the difference between commercial auto insurance coverage and personal auto insurance coverage. The main separation lies within the purpose of getting covered. Usually, businesses have many concerns that an individual driving a personal vehicle wouldn’t have to address, and additionally, commercial autos have higher liability limits as well.

Commercial auto insurance will cover things such as:

  • Any auto liability – this essentially extends the existing liability coverage you have on any other existing commercial vehicles to any new commercial vehicles that you purchase (and non-owned or hired vehicles too)
  • Trailer interchange insurance (this coverage is for non-owned trailers that you haul under a trailer interchange agreement)
  • Rental reimbursement with downtime (this insurance helps cover the costs that you incur when temporarily replacing an inoperable commercial vehicle)
  • Single-deductible options (if you haul a trailer or use other specialized equipment for your work, you can extend the coverage for those items as well, and only pay your deductible once for claims on both the vehicle and trailer)
  • Non-owned vehicle coverage (protects your vehicles that you owned if your employees are driving them, even if they aren’t owned by the company itself)
a picture of vans lined up in a row in a business parking lot

Staying Protected

If you need to revisit your auto insurance policy, we are here to help. Whether you are considering adding commercial auto insurance to your policy, looking for a quote for a new policy altogether, or simply have insurance-related questions for us, our professional insurance agents are here for you. Feel free to contact us today with any and all of your insurance needs!