Insurance, Your Business, and You

Commercial Auto Insurance: Do You Need It?

If you have a business, you may need commercial auto insurance. This type of insurance covers vehicles used for business purposes. You may need commercial auto insurance to ensure that you are able to cover damages that occur when you are operating in a business capacity. 

Commercial auto insurance can be expensive, but it can also give you peace of mind knowing that your business is protected. Here's how to know if you need commercial auto coverage.

Does Your Business Own a Vehicle?

The first factor to consider is whether your business owns any vehicles. If you have company cars, vans, or trucks, you'll need to insure them.

You will need several types of coverage. First, you'll need liability insurance in case someone is injured in an accident and you're found at fault. You'll also need collision and comprehensive coverage to pay for damages to your own vehicle.

How Do You Use Your Vehicle?

Another factor to consider is how you use your vehicle. If you use your vehicle to transport goods or customers, you'll need commercial auto insurance. If you are in an accident and a passenger is injured, you do not want to be personally liable for damages.

If you carry merchandise and other materials that could be damaged in an accident, some personal policies may not reimburse you for damage to these items. Commercial auto insurance might.

If you only use your vehicle for personal errands, you might not need commercial coverage. However, it's always best to check with your insurance company to be sure.

Do You Lease Your Vehicle?

If you lease your vehicle, you might be required to have commercial auto insurance. This is because the leasing company wants to make sure its investment is protected. If you don't own your vehicles outright, you do not want to be stuck footing the bill on your own.

What Is the Value of Your Vehicles?

The value of your vehicles is also a factor to consider when you check out different policies. For instance, you may need gap insurance if you are still paying off a vehicle loan. If you have expensive vehicles, you'll want to make sure they're properly insured.

Have You Checked With a Commercial Auto Insurance Company?

If you're not sure whether you need commercial auto insurance, the best thing to do is check with a company that specializes in this type of coverage. They can help you determine what type of policy is right for your business.

Contact a local insurance agency to learn more about commercial auto insurance.