We agree, auto insurance is a necessary fact of car owners, car drivers’ lives. But how does one decide on domestic or commercial coverage?
Deciding if you Need Commercial Auto Insurance
Personal auto insurance policies are legally required in all states in one form or other. Driving personal vehicle to work is what constitutes commuting. Standard auto policies take care of driving to the work place as well as all other personal driving needs. Auto insurance protects us in bad times and reduces the impact other financial losses. Try to understand new car insurance commercials for your special kind of driving requirements.
But knowing where personal auto insurance ends and commercial coverage starts is a matter of concern. Small time entrepreneurs or home businesses as well as others need to think about insuring their vehicles in the right matter. The first step is to list out your vehicles usage for earning income other than commuting to a job. It goes without saying that a business owner using any vehicles solely for business needs commercial coverage. Certain vehicles have commercial tags which will require such coverage. People do not insure their business and house in the same way. Similarly, the requirements for personal use automobile and those for business use require different coverage.
Indicators for requiring commercial car insurance
Registration
Consider two cases. Vehicles registered in the name of a business definitely require commercial coverage. However, in the second case when an automobile is registered in the name of owner but used primarily for business purposes will require commercial coverage and not personal auto policy. The distinguishing lines between commercial and domestic use for home based entrepreneurs may be very thin. It is better to clear up the matter with your services providers.
Who drives?
Employees driving a vehicle for business purposes require commercial coverage. Insurers underwriting commercial coverage list a primary and a numbers of employees as drivers to evaluate risk. Business premiums are vastly different from that of personal car insurance premium.
Business Use:
As with high risk personal car insurance, high risk commercial auto insurance too has its own place in covering financial losses for business more risk prone to dangers and unfortunate events. A vehicle seeing regular high risk business needs such coverage. People using a vehicle for commercial purpose more than 3 times in a month require commercial coverage. It is for the insurer to advise customers on the level of risk their business is facing and provide appropriate coverage.
Business use or Commercial use of vehicles include regular travel to clients and job sites depending on nature of work and frequency of visits. The following will automatically put your vehicles in the commercial coverage category.
Carrying Equipment (ladders, supplies, tools, etc.)
Bring Hazardous (or flammable) material
Taking Housekeeping Equipment for a business
Equipped with cranes, winches, snowplows (not for use on private property only)
Towing for Hire
Delivery of Goods (including but not restricted to pizza, flowers, wholesale, retail)
Rural Newspaper Delivery
Trucking – Local and long haul
Messenger, deliverer, chauffer
Taxi driver
Get your online car insurance quotes if you are thinking about policy add-ons like
Coverage for a third party as an additional insured.
Waiver of subrogation.
Liability coverage for hired or non-owned vehicles.
Liability coverage for mobile equipment.
By this add-ons, you can easily get online auto insurance quotes.
