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Cheap Car Insurance

Do I Need a Business Auto Insurance or Commercial Auto Insurance Policy?

If you use vehicles in the commission of work, a personal auto policy probably will not cover you as they are designed for personal use. That is, using your vehicle for work puts you on the road more than personal use does. Therefore, your risk of having an accident increases.


A personal auto insurance policy does not provide enough protection for this increased risk. You are covered when you are driving to and from work, but- unless your policy states otherwise- use for business purposes is not covered.


This lack of protection is where a business auto insurance or commercial auto insurance policy comes into play. You need this additional coverage if you meet any of the following:


• Travel to and from job sites


• Deliver goods- anything from residential pizza delivery to product fulfillment at retail locations


• Provide driving services, including rideshare, limos, and taxis


• Carry equipment, tools, flammable materials, or hazmat materials


• Tow vehicles


• Are leasing the vehicles


• Or any company vehicles are leased to others or are owned by a corporation


Though both business auto and commercial auto policies are designed for business use, they both have different purposes. The type your business needs depends specifically on the types of vehicles you have and how you use them in the commission of business.


Business Auto Insurance


Business auto insurance is for what some refer to as standard business use. It’s for those who use a vehicle to make money, but not quite hauling large loads down the interstate. One of the best examples of standard business use is a salesperson, real estate agent, or a home nurse that uses their automobiles to visit clients on work day.


Commercial Auto Insurance


Commercial auto insurance is for more heavy-duty use. It would include workers such as long-haul truck drivers, delivery drivers, or bus drivers.


It is important to note, though, that it is not only the size of the vehicle that determines which policy you need. It can also be about the particular job and the number of stops you make in a day.


Sometimes, what one insurer considers standard business use, another might consider commercial use. This is the gray area that jobs such as pizza delivery drivers and rideshare drivers fit.


If you use your vehicle for work in any capacity or own company vehicles, it’s important to get the proper protection. Let Geiger Insurance help you determine what protection you need and help you find cheap car insurance to match. Contact us today for a no-obligation quote.

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