Basics Of Commercial Car Insurance

Commercial auto insurance provides protection for any vehicle designated for business use against both property damage and liability. Whether you drive a vehicle that is for dedicated business use or drive a personal vehicle for business, it is important to have commercial auto insurance, as your vehicle will not covered under a personal auto policy. Check the basics of commercial car insurance and get an auto insurance online quote.

commercial-vehicle-insurancesUnlike a personal auto insurance plan, commercial coverage is designed for the needs of businesses that have several drivers and multiple cars. It works around the possibility that every employee within the company will drive the vehicles, so the liability protection is usually greater than the amount provided under a personal plan.

According to the American Association of Motor Vehicle Administrators, commercial companies do not register vehicles in the same way as a personal vehicle, so the information provided to obtain a quote is different. A commercial company can have as many as several hundred possible drivers, all of whom are insured under the policy. The result of that difference is that an insurance provider may not be able to match the VIN on the vehicle to the state database, so other measures are necessary to provide appropriate coverage.

The other difference between commercial and personal coverage is the number of drivers. A business may need coverage for 10 or 15 drivers, even if they only drive occasionally. The rates are much higher as a result of the number of primary drivers.

Commercial auto insurance covers a variety of situations. Options and terms vary from one insurance company to another, so be sure you fully understand what is included in the policy.

If you use your vehicle for any of the following functions, you may also be required to get commercial coverage:

  • Using the vehicle to carry equipment
  • Transporting flammable or hazardous material
  • Transporting housekeeping equipment for business use
  • Using, carrying or transporting cranes, or a winch or plow
  • Hiring your vehicle out to tow other vehicles
  • Delivering any goods such as pizza or any form of wholesale or retail products
  • Delivering newspapers
  • Trucking and freight transportation
  • Transporting people as a chauffeur, limousine service or taxi service

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