Commercial auto insurance and personal auto insurance are two completely different things – mainly because a commercial vehicle faces more risks and needs more protection than a personal vehicle.
If you are conducting business in a vehicle that is only covered by personal auto insurance and that vehicle is involved in an accident, you risk having your claim denied.
Each state has different requirements, but nearly all of them require that any registered vehicle be covered by – at least – liability insurance, and some states require that you purchase uninsured motorist coverage and no-fault car insurance. Pennsylvania is one of those states, and these requirements – and often more - apply to your commercial vehicle.
If you transport hazardous materials or you transport goods or passengers from state to state, you are also subject to federal requirements for commercial auto insurance. For instance: a commercial vehicle carrying 16 or more passengers across state lines is required to have $5 million of insurance and a vehicle carrying less than 15 passengers across state lines is required to carry at least $1.5 million of insurance.
Often, you will find that insurance companies will only sell you policies that include coverage that is higher than the state’s minimum requirements for personal vehicles, because providing coverage for a commercial vehicle increases the risk. Plus, financial intuitions may require additional coverage.
If you own or lease a fleet of vehicles, you probably understand that you need commercial auto insurance, but even if you own just one of the following vehicles and use it for business purposes, you should have commercial vehicle insurance:
You might be surprised to learn that you should also have commercial insurance for a “regular” car, pick-up truck, or SUV if any of these circumstances apply:
As independent insurance agents, we can help determine the right auto insurance at the right price for your vehicle by shopping among competing insurance carriers. Click or call today.