Have you ever wondered if you need commercial auto insurance? In general, if a vehicle is used in tasks related to the operator’s occupation, profession, or business (other than commuting), a commercial policy is necessary.
What is the difference between personal and commercial auto insurance?
A personal auto insurance policy will help protect you, your car, and anyone who may be involved in an accident. A commercial auto policy is needed for any vehicles that you use for business purposes. Simply driving to and from work doesn’t require commercial auto insurance because that is covered by your personal auto insurance. However, if you are someone like a real estate agent who drives clients to showings, or a landscaper who drives a truck filled with tools and supplies, you will need a commercial auto policy to protect your assets.
So what exactly does commercial auto insurance cover?
Commercial auto insurance covers vehicles used for business and the people who drive them. This type of policy will provide coverage if you or your employees spend any part of the workday driving from one location to the next, especially if you are transporting products or inventory. If any of these examples relate to what goes on at your company, then you must make sure that your business vehicles are properly covered.
Employee drivers tend to put a lot of miles on their company’s vehicles, making them more prone to breakdowns which luckily, is covered by the average commercial auto insurance policy. Accidents are also covered under this type of insurance. If you or one of your drivers are ever involved in an accident, your commercial auto insurance can cover the vehicle, the driver, and the inventory that was damaged. As a business owner, you certainly don’t want an accident to eat into any of your profits or hard work and let’s face it, accidents do happen to even the best drivers, so it is key to make sure that your assets are always fully covered.
Commercial auto insurance is made up of several types of insurance coverage, including:
- Liability coverage: This protects you when you or one of your employees causes bodily injury to another party while using one of your covered vehicles. As well as when you or an employee cause property damage to another party while using one of your covered vehicles.
- Medical payment coverage / personal injury coverage: This protects you by paying medical expenses for the driver and passengers of your vehicles if they are involved in an accident, regardless of who was at fault.
- Collision coverage: This protects you by paying for the damage to your vehicles from accidents, regardless of fault.
- Comprehensive coverage: This protects you by paying for damages to your vehicles due to theft, vandalism, extreme weather, falling objects, or other non-crash incidents.
- Uninsured/underinsured motorist coverage: This protects you by paying for damages caused by an uninsured or underinsured driver operating the company vehicle in question.
Your vehicles, whether you own one car or a whole fleet of trucks, are as important to your business as any other asset, so having the right insurance is a must.
To determine if a commercial auto insurance policy is right for you, consider these three factors:
- Ownership of the vehicle: All vehicles owned by a company need commercial auto policies.
- Use of the vehicle: If you own your vehicle AND use it for work, you may need a commercial auto insurance policy in addition to your personal auto policy so that you and your car are fully covered when utilizing it for work activities.
- Make and model of the vehicle: If your vehicle has a gross weight of 10,000 pounds or more, or has a load capacity of over 2,000 pounds, then you need a commercial policy.
If you are considering a commercial auto insurance policy, contact a Webb Insurance Group representative today to receive a quote that comes hand in hand with the best service out there!