Commercial Auto Insurance vs. Personal Auto Insurance
Vehicles involved in an accident while taking part in company business may not be covered by your personal auto insurance. Making things worse, you could be charged with misrepresentation if you’ve placed a vehicle you use for commercial purposes on your personal auto policy.
Here are some instances where many personal auto policies will not cover:
- You use a vehicle other than a car, pickup or panel van. Remember your customer doesn’t want to have to know every type of vehicle that you might use or acquire after he/she starts dealing with you. The customer just wants to know that you’re insured and losses you cause will be covered for by your insurance.
- You have an employee that uses his/her vehicle in your business.
- You rent a vehicle that you use in your business.
- Someone is injured loading or unloading your vehicle.
- You tow a trailer or contractor’s equipment with your vehicle.
In order for your business to get the best deals possible from auto insurance companies on auto insurance quotes, here are a few added tips:
First, determine the needs of the company’s fleet, how often the vehicles will be used on the road and which employees will be responsible for them.
Business owners should also determine which vehicles will need auto insurance, focusing in on the values and kinds of vehicles. In some instances when shopping around for auto insurance quotes, you might consider different coverages and limits to locate the right auto insurance coverage at the best price.
In an effort to save on general auto insurance, make sure your fleet is given proper maintenance.
By doing so, it leads to a better performing fleet, decreases the risk of down time and lowers what your company will pay in commercial auto insurance premiums.