Are you using company-owned vehicles to conduct business? You might need to consider getting commercial auto insurance. For those who are new to the game, this may be a confusing subject. You know you need coverage, but may not be clear on what kind or how much. Our knowledgeable agent can help ensure you have the specific coverage you need for your unique operations. The following is some general information about commercial auto insurance for beginners.
Personal auto insurance policies only cover claims related to the personal use of a vehicle. This includes commuting to and from work. They have lower policy limits and cost less than commercial auto insurance policies. Insurance companies will deny personal auto insurance claims for accidents that occur when a vehicle is being used for business purposes.
Commercial auto insurance is designed for business-owned vehicles that tend to cover more ground. They typically have higher policy limits and higher premiums due to the increased risk.
If one or more vehicles are used to perform tasks related to your occupation or business other than commuting, you probably need commercial auto insurance. This coverage is needed when vehicles are:
Commercial auto insurance covers the cost of accidents involving business vehicles. It includes the following types of coverage:
If you rent or lease your vehicles, or if you or your employees use personally-owned vehicles for business purposes, commercial auto insurance will not protect you. In that case, you need hired and non-owned auto insurance. Personal auto insurance will not cover accidents that occur when a vehicle is being used for business purposes. Having hired and non-owned auto insurance can help protect you and your employees from personal liability for accidents.