Do you own a business? Do you also own a truck that you use for that business? Do you also own a car that you sometimes use for that business? You probably already have your truck insured with a commercial auto policy, but what about your car? Maybe you use the truck only when you are working and the car when you’re not, but what if once in a while you use your car for estimates. Is that still considered business? You aren’t actually performing any business…yet. Not until you actually land the job, but estimates are a requirement in some businesses. How should you insure your car, with a commercial or personal auto policy?
Not Sure? Ask Your Agent
Whether you need a commercial policy or can get by with a personal policy is often contingent on what company your vehicles are insured with. Different companies have different guidelines. It also, of course, depends on how your vehicle is used. If you’re not sure, ask your agent. Here are some questions you should consider:
How is commercial use defined?
It may be that commercial use is defined as “a vehicle that is used to pickup or deliver goods, which in case could mean:
- Newspaper delivery
- Pizza delivery
- Day care or church van services
- Transporting people to or from doctors appointments, dentist appointments, the grocery store, etc., for a fee
A commercial policy may be the right way to go in such cases.
What if my vehicle has special permanently installed equipment?
If your vehicle has ladder racks, permanent toolboxes, a snow plow, or other specialty equipment used for business, you should be carrying commercial auto insurance.
How much liability coverage is required?
Your agent will know whether you need more liability coverage than is provided by a personal auto policy. Commercial policies in most cases offer higher liability limits.