When to Get Commercial Auto Insurance

Hi there, and welcome back. It’s pretty easy to understand why you need auto insurance on your personal vehicle; first, most state laws require it, and most importantly, you want to make sure you, your loved ones, and your property are protected in the unfortunate case of an unexpected accident. At Forerunner Insurance here in Florida, we know that it can sometimes be more challenging knowing whether or not you need to have commercial insurance coverage for your vehicle. Depending on your line of work, your employer, and whether or not you own a business, chances are you may need to have your vehicle covered by commercial insurance, rather than personal auto insurance. In today’s blog post, we’ve compiled a list of tips which may help clarify when it’s best to have a vehicle commercially insured. Please read on to learn more.

What is Commercial Auto Insurance?

In a nutshell, commercial insurance covers vehicles used for business purposes, which protects against potential losses through unforeseen circumstances such as an accident, theft, property damage, weather damage, and liability. Commercial vehicle coverage protects auto property when unforeseen circumstances cause damage to a vehicle that interrupts business practices and/or injures a business owner or employee.

Acceptable Business Usage Under a Personal Auto Policy

These are some of the business uses that, in most cases, are covered under a personal auto insurance policy, although it’s wise to double-check with an insurance specialist at Forerunner Insurance Group:

  • Accountants, lawyers, real estate agents, and clergy members who may use their vehicles to carry clients regularly.
  • If home health care professionals do not transport patients on a regular basis, they can most likely rely on personal auto insurance.
  • Work from home or direct sales businesses such as Mary Kay, Avon, or Arbonne, for example, do not need commercial insurance unless this is a full-time job or mileage driven exceeds 500 miles per week, it may be beneficial to consider commercial insurance for the vehicle being used.

Commercial Vehicle Insurance Coverage is a Must for:

  • Semi trucks
  • Fleet trucks
  • Tow trucks
  • Box trucks
  • Commercial vans and vehicles (including “regular” vehicles like cars, SUVs, pickup trucks, vans, and Smart cars)

You Own a Business

You’ve invested a great deal of time, energy, and money into your business. You want to protect every aspect of your business, including the people who help you run it, every bit of property, and the reputation of your business. Commercial vehicle insurance can safeguard all of these valuable assets, which can help your business thrive. If you own a business and use a vehicle to run business-related errands, to pick up company supplies, or you use it regularly to conduct business-related…well, business, you’ll want commercial insurance. One way to determine if your vehicle is regularly used for commercial purposes is if the vehicle is used on average three times or more in one month.

You Use Your Vehicle Solely for Business Purposes

This may seem like the most obvious reason to have commercial insurance, yet many still rely on their personal car insurance even when a vehicle is used regularly for business purposes. This is often the case for people who own small businesses which they run from home or out of a small office. Many small business owners think that because they are just that, small, that they don’t need a commercial policy. “Regular” automobiles such as cars, pickup trucks, SUVs, vans, and even Smart cars can actually be considered as commercial vehicles. To be frank, if you use a vehicle to conduct business-related tasks other than simply commuting to and from work, you will most likely need commercial auto insurance.

Use a Vehicle to Carry Equipment

Do you use a vehicle—and remember this includes those vehicles classified as “regular”—to carry equipment for your business or your employer’s company? Types of equipment may include ladders, supplies, tools, artwork, art supplies, landscaping equipment, and so on. If so, get a commercial insurance quote from Forerunner Insurance Group and make sure your vehicle and equipment are covered in case of an emergency.  

Vehicle Delivery Services

Do you use your personal car to deliver flowers, wholesale, or retail goods for your small business? Even if this is subcontracted work you do on the side of your regular job, you should still consider getting commercial insurance for your vehicle.

Delivery, Chauffeur, or Messenger Services

When using a vehicle to drive documents or goods to and from a destination for business purposes, for transporting and delivering medical records such as x-rays and MRI films, or driving people to and from destinations on the reg, it’s best to contact a Forerunner insurance specialist to determine whether or not commercial insurance is required. For such ride-hailing services like Uber and Lyft, it’s best to check with your insurance agent, too. In some cases, these companies provide some auto insurance coverage, but for UberX drivers, for instance, they most likely will need to insure the vehicle with a commercial policy.

Call for a Free Quote

It can be hard knowing when you should have commercial auto insurance coverage, so we hope you have found these tips helpful in clarifying when to get or at least consider purchasing a commercial policy. If you have any questions about commercial vehicle insurance or would like to purchase a policy, call Forerunner Insurance Group or fill out our online form today to request a free quote. As Florida’s Top Rated Local® commercial insurance group, our team of insurance experts will work hard to find the right insurance plan that fits your needs. We look forward to working with you!

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