Commercial Auto Insurance

When many people think of a commercial auto insurance policy, they may think of big vehicles such as semi-trucks, box trucks, garbage trucks, etc. However, there are many variations of vehicles that would qualify for a commercial auto insurance policy.

How to Determine If You Need a Commercial Auto Insurance Policy

If you are using your vehicle or your employer’s vehicle for business purposes, you need a commercial auto insurance policy or endorsement. For instance, many people are working in the gig economy in jobs such as delivering food with your own vehicle or doing rideshare. It is important you have the right insurance coverage. If you do get into an accident where you are making a food delivery and damage your vehicle or someone else’s property, your standard personal car insurance policy will likely not cover you. Contact our agents with any questions you may have.

Here is a quick reference to help you determine if you need a commercial auto insurance policy:

1. Using your vehicle to carry business equipment
2. Freight transportation
3. Towing vehicles
4. Delivering food or goods (Amazon drivers, food delivery drivers, newspaper delivery)
5. Using your vehicle to chauffeur people (Uber or Lyft Drivers, taxi service)
6. Transporting material

How Is A Commercial Auto Insurance Policy Different Than My Personal Auto Insurance?

Since your vehicle is being used for business purposes, there are different risks that need to be insured. Additionally, the rating system used by companies is entirely different than a personal auto policy.  Each commercial policy needs vary, so have a discussion with your agent to discuss your specific policy limits. For business owners with many vehicles to insure, business auto fleet policies are available. Additionally, consider adding a commercial umbrella policy above and beyond your standard commercial auto policy to protect your business from a catastrophic vehicle accident claim.