Commercial Auto Insurance: Do I Need Business Auto Insurance Coverage
About Commercial Auto Insurance
Whether you have one vehicle or a fleet of vehicles, a dump truck or a taxi cab, if you use your vehicle(s) for business you need commercial auto insurance also known as business auto insurance or commercial auto coverage.
You may be surprised at how easy it is to get commercial auto coverage. Most of the same companies you’re used to dealing with for personal auto insurance also offer commercial accounts.
What’s In a Commercial Auto Insurance Policy?
Basically, the same features you know from your personal auto insurance policy but tailored towards business use. The big difference between a personal and commercial policy is the risk and liability for both you and the insurer. Since it’s deemed a business vehicle it is assumed the vehicle will be driven more often than a personal vehicle and by more drivers increasing overall liability and risk.
Features Your Commercial Auto Insurance Policy May Include
- Liability
- Comprehensive/Collision
- CSL (Combined Single Limits)
- Hired Auto Coverage
- Employers Non-Owned Auto Endorsement
- PIP (Personal Injury Protection)
- Underinsured and Uninsured Motorist Coverage
Is Commercial Auto Insurance Expensive?
That depends on a number of factors including use, size of the business, eligible drivers and their driving records, liability limits and more.
Look at it this way, if you expect the insurance company to insure your business vehicle(s) for daily work use by a number of drivers, then it can get expensive. If the business use mirrors your personal use and it’s just you driving the vehicle occasionally for business, you may find rates that aren’t a whole lot different than what you pay personally - but you still need a separate commercial auto insurance policy.
What Will I Need to Get a Commercial Auto Insurance Policy?
You will need a number of things ready to get started.
- The Make, Model and VIN (Vehicle Identification) of each vehicle used for business.
- The estimated value of each business use vehicle, if it is used for personal reasons, and the estimated daily driving distance from where you keep your vehicle to where your business is located.
- Vital information of each business driver (for obvious reason they want this on file) including, Name, address, DL# and SSN# as well as their individual driving records.
Will My Personal Auto Insurance Cover Business Use?
Absolutely not, well not likely anyway. If the “at fault” insurance company determines the vehicle damage was caused by a vehicle used for or owned by a business they will likely deny the insurance claim as the damage falls under “business use” and therefore is the responsibility of your commercial auto insurance policy coverage. There is a clause in nearly every personal auto insurance policy that states your vehicle can not be insured for business use.
Please note! there is absolutely no way anyone but a licensed insurance agent can tell you exactly what your premium and options are…so please contact a licensed commercial auto insurance agent and speak with them directly to discuss rates.
Who Sells Commercial Auto Insurance Policies?
These are a few of the major companies that offer commercial auto insurance policies. Get as many different auto insurance quotes as you can so you can effectively compare rates. AIS has an article you may also want to read that covers how to find an auto insurance agent.
- Drive Insurance
- Liberty Mutual Commercial Auto Insurance
- Mercury Commercial Auto Insurance
- Nationwide Commercial Auto Insurance
- Progressive Commercial Auto Insurance
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