Who Needs Commercial Car Insurance Anyway?

Published: February 5, 2018

Updated: May 15, 2018



Does your organization need commercial auto insurance policy? Can you continue to get use your personal vehicle to run occasional company errand? It might be difficult to tell when a little is not enough and it”s high time you begin to look around for commercial insurance policy or insist that your employers add you to their insurance cover.

A question that comes up is “who needs commercial car insurance”? The answer is that anyone who spends time driving while at work needs to seriously consider buying a commercial car insurance policy. Can you guess why? This is because cars which are used more frequently for wok are considered by the insurance company as more likely to be involved in an accident. For this reason, one of the first questions you will be asked any time you request for an auto insurance quote will be what you doing with your car and your response should be what they want to hear. It is imperative you ensure your vehicle is adequately classified as either a personal use vehicle or a work vehicle. Do you know why? This is because if your car is classified as “personal use only” and you are involved in an accident while using it of business reasons, your insurance company may not assume responsibility. You may be stuck spending thousands of dollars in repairs because you did not inform your insurer that you use the car every day of the week to run business errands and you got involved in an accident while doing this.

Since the last thing you want to do is see yourself having to pay for your own repair and medical bills, and also for everyone involved in the accident, you want to make sure that you have the right kind of insurance cover. Workers who are qualified to be protected under a commercial car insurance policy include:

  • Day care
  • Construction
  • Catering
  • Real estate
  • Pizza Delivery
  • Newspaper Delivery
  • Snowplowing/landscaping
  • Consulting or Door-to-Door sales

There are lots of benefits to get from a commercial policy than just receiving payments for your claims. Commercial insurance policies have greater liability limit than regular policy which is a good news if you are driving a truck loaded with equipment, also any of your employees who needs to use a company vehicle will be covered under the insurance policy. It is important to note that it is considerably nicer on your company budget to pick up a specialized commercial auto insurance than including your company vehicle in your personal coverage.

Anyone business owner that wants to see their company funds spent on ventures that are most profitable, requires commercial car insurance.