Any vehicle being used for business or commercial purposes is technically a commercial vehicle, which means it needs to be insured by a commercial vehicle insurance policy. This includes any vehicle used for the pickup or delivery of goods and any vehicle used to transport people for business.
You may also need commercial vehicle insurance if your vehicle is…
Bottom line: If you own or use any type of vehicle for business purposes, you need a good commercial auto insurance policy to protect yourself, your employees, and your business!
It is true that the premiums for commercial vehicle insurance are generally higher than premiums for personal vehicle insurance, but there’s a very good reason for that - the risk of covering any vehicle used for business purposes is higher than the risk of covering cars used for personal purposes. This is the main reason car insurance policies for commercial purposes differ from personal policies.
Types of commercial auto insurance include:
Many of the common types of personal car insurance coverage also apply to commercial auto insurance, such as:
But, commercial car insurance policies are better suited to cover:
DON'T RISK IT!
If you carry a personal car insurance policy, and you file a claim for an incident that occurred while driving for business purposes, you may find that your car insurance company will not pay on that claim. A good commercial auto insurance plan can save you from a financial disaster, regardless of whether you're an independent contractor or the CEO of a multi-million dollar company.
Your commercial auto insurance rate depends on several factors. These factors include, but are not limited to:
The nature of your business and how your vehicles are used will also affect your rate. As with personal vehicle insurance, the lower your risk, the higher your savings will be. Other factors include: