What is Commercial Auto Insurance?
Commercial auto insurance is meant for vehicles that are used for business. It can also cover vehicles that simply fall outside the range of regular personal auto insurance. For those who have vehicles that are used specifically for business or they have personal vehicles that they also use for business purposes, commercial coverage is necessary. Additionally, if you deliver goods or allow your employees to use your personal vehicle to conduct business, commercial coverage can be beneficial.
Do I Need It?
The fact of the matter is that personal auto policies are not made for business purposes. They do not anticipate the added risk that comes with using a vehicle for commercial purposes. In addition to this, many personal policies violate the use of a vehicle for commercial purposes. This means that if you do use your vehicle for commercial purposes under a personal policy, you may be violating the terms of your policy. What this means is that if you are in an accent, your claim can be denied even if you were using the vehicle for personal use at the time of the incident. Overall, it is best to consider commercial insurance if you are using your vehicle for business more than three times a month.
Who Doesn’t Need It?
Certain businesses do not benefit from commercial coverage. Typically, these are the businesses that do not require much use of the vehicle. If the business that you are operating is not your main source of income and it is not increasing your mileage substantially, then a commercial policy may not be for you.
Certain businesses may have to transport clients regularly. For instance, real estate agents may take their clients to properties in their personal vehicle. However, they still will likely not require commercial coverage. On the other hand, taxi drivers and other businesses that revolve around transportation will need the coverage.
Finally, if you are only using your vehicle to commute to and from your workplace, you likely do not require a commercial policy.
Commercial vs. Personal Auto Insurance
There are certain things that your commercial policy will cover that your personal one will not. For instance, commercial policies pay for any vehicles that you may need to rent if the one that you have is not operable. It also pays in the event that you or your employees have to drive a vehicle that you do not own.
Trueway Insurance is located in Palm Springs. If you are interested in learning more about what insurance policies we offer and how we can help you, contact us today.