Commercial Auto Insurance: When Your Business Needs It

Determining if you need commercial auto insurance can be confusing as the decision-making process contains a large amount of variables.  You will need to consider several things in order to make the decision. Many smaller businesses will not need it, unless they are using businesses owned vehicles for more than just driving to and from work.

Types of Business That Need Commercial Coverage

If you use vehicles that are owned by your business for transporting people, such as taxi services and shuttle services you will absolutely need to purchase commercial insurance. You will also need to purchase this coverage if you are using the company vehicle to transport goods, such as delivering your merchandise to a customer. If your business uses vehicles to drive around for meetings or conventions, commercial coverage is necessary.

If you employ several people who will be using company owned vehicles you will need to let your agent know about that as well. Premiums are cheaper with one registered driver and more expensive should you need to let more than one person drive the company owned vehicle.

To Consider before Choosing a Company

  • How many people will be using the company owned vehicle?
  • How many vehicles will you need covered?
  • Do you use the vehicle for meetings or deliveries?
  • Will you or your employees need to drive this vehicle out of state?
  • Is the vehicle a truck, car, or van?

These are questions you will come across when searching for a company to purchase your commercial auto insurance.

Commercial Auto Insurance Companies

Nearly every insurance company that offers personal auto insurance will also offer commercial auto insurance. The first step is to check the policies that you currently already have your personal insurance with. You may receive a discount and you may already feel comfortable with this company so the transition will be easier.

If you prefer to use another company to purchase your policy, you will want to shop around and make sure you have your answers to the above questions handy so that getting a quote will be a little less time consuming. You will also get advice from your agent as to whether you actually need commercial insurance or if personal insurance will be all you need. Be careful that you choose a company that is well versed in commercial auto insurance before you act on any advice they give you as this can really be a very important decision.

Why You Will Need Commercial Insurance

If you run a small business an accident in a vehicle owned by the company can literally ruin your business without proper coverage. Do not make the mistake in thinking that each driver’s personal insurance is coverage enough, because this is not the case with company owned vehicles. If your employee is using the vehicle as a means to get to and from work, this may be the only loop hole from having to purchase commercial insurance, but you will still have to put them on your policy as a driver. In every instance where you have employees who drive company cars for deliveries, meetings and the like, you will need to purchase commercial auto insurance. The premiums are worth paying when the risk is possibly losing your business because of an accident.


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