When Does a Business Vehicle Require Commercial Auto Insurance Coverage?

Not all vehicles should be covered under personal auto insurance. Many people use their personal cars or trucks for business purposes, even if only occasionally. For such usage, you should consider commercial auto coverage for your vehicle. Not having the appropriate insurance could leave you vulnerable to hefty out-of-pocket fees and costs after an accident.

What is Commercial Auto Insurance?

Commercial auto insurance functions in a lot of ways like personal auto insurance. However, commercial auto policies typically offer higher liability limits, cargo coverage and other coverages to address the additional risks associated with business activities.

When is Commercial Auto Insurance Necessary?

Vehicles used for the following purposes should be covered by commercial auto insurance rather than a personal auto policy:

• Vehicles driven for work—A personal auto policy will not cover a vehicle used for business operations.

• Vehicles modified for business use—If the vehicle has specialized equipment or additions like refrigeration, it may require a commercial auto insurance policy.

• Vehicles used to transport passengers—Anyone working for a rideshare, taxi service, or otherwise transporting people for work may need a commercial policy to cover your vehicle.

• Vehicles owned by a business or used for work—Any cars or trucks owned by a business or used for business purposes should be covered by a commercial auto insurance policy.

Contact Us

Simply commuting to and from work doesn’t mean you need a commercial auto insurance policy. However, if you frequently use your vehicle for business purposes, or own vehicles specifically for work, they may need to be covered by commercial auto insurance. The team at Wilcox Family Insurance Company can help you decide which coverage best suits your needs and budget. Contact us today for a personalized quote or more information.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.