Your auto insurance may not be sufficient if you use your personal vehicle for work-related chores during the working day
Certain types of driving related to work are not covered by personal auto insurance. To be covered, you would need a commercial auto policy if you frequently transport people or goods, make deliveries, or tow trailers or other vehicles. And regardless of how you use your personal vehicle, you always need business coverage if you want to insure them for work-related activities.
You may require a commercial insurance policy if you use your own vehicle for either your own business or that of an employer.
Personal Auto Insurance Coverage
In the case of an accident, your personal insurance coverage will protect you, your passengers, and your property. On the other hand, if the accident happens when you’re en route to meet a client for work purposes, your claim may be rejected.
Personal insurance is intended to cover the typical daily amount of travel. Employees in many professions commute to work and leave their cars parked for eight hours. Your personal policy won’t offer enough protection if your employment demands you to drive to various work locations each day or transport goods or passengers necessary for your job.
Commercial Auto Insurance Coverage
Using your car frequently for business means you are driving more and therefore, putting yourself at a higher risk for incidents. Drivers who use a personal vehicle for work and carry equipment or goods for that job definitely need commercial coverage in the case that there is property damage or theft. Personal auto insurance will not cover these types of incidents. You also need to carry additional liability insurance if you frequently transport clients for pay.
When You Need Commercial Coverage
Even if you are self-employed, the amount you use your personal vehicle and the intended purpose for the majority of your driving will help you determine whether you need a commercial policy.
Here are some examples of work-related excursions that may require commercial auto insurance.
- You travel for work every day to meet with several clients in various areas.
- You transport commercial items associated with the business (like pizza or newspaper delivery). These examples we can endorse a personal policy for, and if I gave you other examples it turns into equipment like is listed below.
- You do passenger travel as part of your job (like an Uber driver). We can endorse a personal policy for this activity.
- You carry equipment for work (like tools, catering equipment, or hydraulic lifts).
- You allow workers permission to use your car for business activities.
- Your car weighs more than 10,000 pounds and is either a pickup, a work van, or a utility vehicle.
The Right Protection
It’s crucial to understand that compared to personal policies, commercial auto policies typically offer higher coverage limits. You can choose the best coverage for you and your company with the assistance of a McKnight Insurance agent.