Commercial Auto Insurance: Do You Need It?

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Commercial auto insurance is insurance designed for vehicles that are driven for business purposes. Depending on whether you own your own company or the type of work that you do for your workplace, you might be required to get a higher liability insurance along with a range of coverage add-ons to ensure that you, your employees, your vehicle, your business, and other individuals are fully protected on the road.

Commercial Vs Personal Auto Insurance

Cars that are driven for personal use only do not usually have the same kind of insurance concerns compared to vehicles that are driven for business reasons. Businesses tend to have much higher liability issues when it comes to vehicles and, as a result, they will have higher liability insurance requirements. In general, businesses tend to deal with more passengers, tools, work gear, products, and other people such as employees or customers compared to a personally driven car. As a result, commercial auto insurance is typically required in order to ensure that sufficient cover is held.

Who Needs Commercial Auto Insurance?

You will need to get a commercial auto insurance policy if you use your vehicle for any kind of business purpose. This could be a vehicle that you use for your own business, a car that you drive when visiting sites for your employer, or a car that you drive to make deliveries using an app like Uber. Commercial car insurance isn’t just for big vehicles operated by big businesses and is necessary for any vehicle that is driven for any kind of business reason by any person. Simply put, if you use a car or other vehicle for any reason related to your business or career other than commuting to your place of work, it is likely that you will need to get commercial auto insurance. Find out more about commercial car insurance. Providers offer a range of insurance products to cover commercial drivers, and you can use their website to see if you need commercial auto insurance and get a quick quote.

What is Covered by Commercial Auto Insurance?

Commercial car insurance will cover the same major coverages as private auto insurance, including accidents, theft, damage and more. However, there are several add-ons to these policies that are not typically included with personal auto insurance. In addition, commercial car insurance ensures that you are covered in the event of an incident during a time where the vehicle was being used for business purposes, which may not always be covered with a personal use policy. It may also include coverage for employees, including fellow employees who travel in the vehicle with you or people for whom your business or employer is carrying out work. It can also include coverage for any work equipment that you may carry in the vehicle with you, and if you own your own business, it can provide coverage to protect your assets in the event of a lawsuit.

How Much Coverage Do You Need?

In general, you will need to meet the liability insurance requirements for your state, which typically include property and bodily damage coverage. These limits might be higher for commercial vehicles compared to personal use vehicles. If you do not own your commercial vehicle outright, your lender might require comprehensive and collision coverage. There are various further types of commercial auto insurance cover that are worth considering, including uninsured or underinsured motorist insurance, which will protect you if you are involved in an accident with another driver who does not have insurance or is not adequately insured.

Some policies will also include PIP and medical payments coverages which will take care of any expenses that you incur as the result of being injured in a car accident, including medical expenses and loss of wages. You can also choose to add emergency roadside insurance, which will provide breakdown cover if you run into problems in your vehicle to avoid being left stranded on the side of the road. This can cover expenses for towing, tire changes, battery services, fuel delivery, locksmith services and more.

If you drive a vehicle for any type of business or career use other than commuting to your place of work, it’s highly likely that you will need commercial auto insurance.

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