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If you’re wondering, “Do I need commercial auto insurance?” The answer is often, “Yes.” Of course, it depends on a few factors, but most states do require it if your small business owns, leases or rents any vehicles. If you or your employees drive cars or trucks for business purposes, you need commercial auto insurance. You’ll also need this policy if any of your employees drive their own vehicles for work or use your company-owned, leased or rented vehicles.To learn more about how you can protect your business while on the road, call 855-829-1683 to get a quote for commercial auto insurance.
When Do You Need Commercial Auto Insurance?
Although coverage availability and requirements vary by state, these are some examples for when you’ll need commercial auto insurance:
- Vehicle Type: If your business owns any cars or trucks used in business operations, or you use any specialized vehicles such as a dump truck, box truck, cargo van, tow truck, or large truck with a weight over 20,000 pounds.
- Vehicle Ownership: If you own a vehicle registered under the business name.
- Drivers: If your employees drive the company-owned vehicle or a personal vehicle for day-to-day business operations, like visiting job sites or transporting goods.
- Vehicle Equipment: If you have permanently attached equipment to any of your business vehicles used for business purposes.
Commercial Auto Insurance vs Personal Auto Insurance
There are a few major differences between a personal auto policy and a commercial auto policy when it comes to what’s covered under each. A personal auto insurance policy protects you when you’re driving a car you use for commuting, driving around town or running personal errands. But it usually doesn’t offer enough protection if you’re a business owner. When operating a vehicle for business, it’s important to know the risks you face because they’re different and bigger. Learn more about what type of auto insurance coverage is right for you below.
What’s the Difference Between Commercial and Personal Auto Insurance?
Commercial auto insurance coverage is needed if you’re using your company vehicles for business reasons. Typically, all of your employees with a valid license would be covered under this policy as additional insureds. It’s important to note that commercial auto insurance usually offers more comprehensive coverages, like higher liability limits.
You will need personal auto insurance coverage if you’re driving your car for personal reasons, including commuting to and from work. In most cases, personal auto insurance will not cover a vehicle that is used in the operation of a business. The coverage limits also tend to be lower.
Do I Need Both Commercial and Personal Auto Insurance?
You may want to consider having both commercial and personal auto insurance coverages. Most states require that your company-owned vehicles are covered by a commercial auto insurance policy. The type of policy(s) you need will largely depend on how the vehicle is titled and how the vehicle is used.
For example, if one of your employees gets into a car accident on their way to complete a business errand for your company, you could be sued for bodily injury or property damage. If you only have personal car insurance, the damages could potentially be all on you because the policy does not cover business use.
Why Is Commercial Auto Insurance Important?
Commercial auto insurance helps reimburse small business owners for costs related to a car accident that occurred while you or an employee was using a company-owned car or their own car for business. This type of insurance helps cover expenses like property damage and medical costs – even if it’s a fatal accident. Many policies can reimburse you for the cost of a rental car and provide coverage for uninsured or underinsured motorists.
Commercial Auto Insurance Requirements by State
Commercial auto insurance laws and requirements vary by state. When deciding on what types of business insurance you need, be sure to check with your local state laws to know what’s required.
Get a Quote for Commercial Auto Insurance From The Hartford
When it comes to keeping you and your employees safe on the road, business auto insurance from The Hartford goes the extra mile. The Hartford makes it easy to get a fast and free quote. Call us today at 855-860-9763.
Last Updated: July 14, 2023
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