Commercial auto insurance provides protection for any vehicle designated for business use against both property damage and liability. Whether you drive a vehicle that is for dedicated business use or drive a personal vehicle for business, it is important to have commercial auto insurance, as your vehicle will not covered under a personal auto policy.
An independent agent in the Trusted Choice network in your area can help you get the business vehicle insurance you need to protect your company assets. Contact a local member agent in your area today.
Commercial auto insurance covers a variety of situations. Options and terms vary from one insurance company to another, so be sure you fully understand what is included in the policy. If you work with an independent agent in the Trusted Choice network, you can work with your agent to create a completely customized policy that matches your business needs, complete with all available discounts.
Several types of coverage may be included in your commercial auto policy; others are options that you can purchase separately. You will also need to choose the coverage amounts (“limits”) and deductibles. Typical coverage available includes:
Commercial auto insurance works by providing insurance coverage or any vehicle that your use for business purposes, and for your commercial drivers. As a business owner, you can get commercial vehicle coverage for a single vehicle or a fleet of vehicles. A commercial auto policy can include several different types of optional coverage, allowing you to adjust the policy coverage to your particular business circumstances and the use of your vehicles.
In the event of an incident, such as damage to one of your commercial vehicles from weather, an accident or other incident, you can file a claim and receive compensation that will help to cover the cost of repairs. If you or one of your drivers is at fault in an accident that injures another person or damages their property, that person can file a claim with your insurance company. In this case, your commercial vehicle liability insurance will cover the costs of the claim, up to the limit of your policy.
Many business owners choose to buy a commercial umbrella policy to cover the costs of large liability claims that exceed the limits of the vehicle liability policy. This strategy can provide much higher limits, in $1 million dollar increments, to cover the costs of liability claims and law suits and protect the business financially.
You need commercial auto insurance for any vehicle that your company uses for business purposes, any vehicle that has a commercial license plate or tag and any vehicle that is registered as a commercial auto.
You must also get commercial auto coverage if your employees will be driving or using vehicles in the course of doing business, whether making deliveries, driving people to the airport or running errands on behalf of the business.
If you use your vehicle for any of the following functions, you may also be required to get commercial coverage:
Some situations and certain occupations may be covered under standard auto policies, but you should always ask your insurance agent if your vehicle use warrants a commercial policy.
You need commercial auto insurance for any automobile, taxi, van, limo, bus or small truck that you use for business because a personal auto policy will not cover your vehicles used for business.
Your commercial vehicle coverage will protect you and your business from the costs of property damage, injury and liability claims that you may incur in the use of your commercial vehicles.
For larger commercial vehicles such as tow trucks, cement trucks, construction vehicles, tractor trailers or semi-trucks, you will need a commercial truck insurance policy. Not only is your commercial vehicle policy critical for protecting your business financially, but it is required by law.
There are several ways to get commercial auto insurance policies, such as shopping for quotes online, but you may not necessarily find the best coverage or rates through the Internet. You also may not have the reassurance that your coverage matches your real needs.
One of the best ways to get commercial auto insurance is through an independent agent in the Trusted Choice network. Here are some advantages to working with an independent agent:
The cost of auto insurance depends on a number of things including the size of your business, the types of vehicles and number of vehicles you need to insure, your risks, and the amount of coverage you need.
Generally, a passenger auto vehicle will cost much less than a heavy duty vehicle such as dump truck. However, insurance carriers also offer fleet insurance and these policies are typically available at a bulk discount
The cost of insurance also depends on the driving records of the drivers who will be using your commercial vehicles. Employees who have bad driving records will cost you more to insure, so it is always important to perform a driving record background check on prospective employees. Drivers who are between the ages of 30 and 65 are typically given better insurance rates.
In terms of the cost for the type of vehicle being insured, rates are generally the least expensive for vehicles used in construction and farming. Vehicles used as passenger vehicles and for small deliveries are slightly more expensive. The most expensive vehicles to insure include heavy duty cargo vehicles that transport loads more than 10,000 pounds.
Yes, your commercial auto coverage is tax deductible. There are many situations that allow you to deduct the cost of commercial auto insurance for tax purposes when you use your vehicle for commercial or business use. If you are self-employed, you may be able to deduct your commercial auto insurance premium under Schedule C; if you are an employee and do not receive mileage or expense reimbursement, you can use Form 2106 (Employee Business Expenses). Your best bet is to contact the IRS or a tax advisor for clarification.
Personal use will be covered for a company owned vehicle providing the company has commercial auto coverage. If you are driving your own vehicle to and from work without using your vehicle for commercial purposes then it would be covered under your personal auto policy.
If you are using your personal vehicle for occasionally for commercial purposes, you will either need to have sufficient liability coverage under your personal auto policy, or purchase commercial auto insurance. The best option will depend on the circumstances; if you are using your vehicle for any kind of business purpose, be sure to talk with your agent. The business may be required to get a non-owned business liability endorsement for these situations.
If your personal vehicle is insured as a commercial vehicle and other members of your family use the vehicle for personal purposes, then you may have to get a “non-owned vehicle” endorsement. Ask your agent about what is required for these situations.
If you use your own vehicle to deliver pizza, there are several options you can consider:
One of the best ways to find a commercial auto policy to suit your individual commercial vehicle insurance requirements is to speak with an independent agent in the Trusted Choice network who specializes in business insurance. An independent agent can compare policies and rates so you can find a policy you can afford.
If you use your vehicle for commercial purposes or plan to do so in the near future, contact an agent today to find the commercial vehicle coverage you need so that both you and your business are protected.