You might be under the impression that your personal insurance policy will cover your vehicles when they’re being used for business operations, but that isn’t always the case. If you’re unsure if you need Commercial Auto Insurance, there are a few questions you can ask yourself to help determine your coverage needs:
Who owns and operates the vehicle? Is the vehicle you’re using registered in your personal name or your business’s name? If it’s registered to your business, you should have Commercial Auto Insurance. If you have a fleet of vehicles for your business, you should have commercial auto insurance to cover the entire fleet.
How is the vehicle used on a daily basis? The way your vehicle is used will also impact whether you need personal or Commercial Auto Insurance. You should have commercial auto insurance coverage if your vehicle is used for any of the following reasons:
• You transport or deliver goods, materials, or merchandise
• You transport equipment or tools
• You transport customers for any reason
What type of vehicle are you using? Bigger, heavier commercial vehicles often cause more damage if they’re involved in accidents, so you should have the proper protection in place for these scenarios. Commercial Auto Insurance is essential if you drive a vehicle specifically designed for construction, maintenance, or other industrial purposes. You likely need Commercial Auto Insurance if you and your business use the following vehicles:
• Pick-up Trucks
• Vehicles used for delivery
• Dump Trucks
• Road Tractors
• Trailers used in a business to transport goods or equipment
