Many small business owners who use their vehicle for work do not consider that they need commercial auto insurance, but the truth is that in many cases they do. Any person who uses their vehicle more than 50% of the time for employment purposes should purchase a commercial policy.
Policy rates are often based on the number of miles that a vehicle is driven during a given time period. Using an automobile as a work vehicle increases the usage of the vehicle significantly and many insurance companies will attempt to use this as a means of avoiding payment on any claim they think they can prove. It is important to always be honest with insurance companies because of possible legal situations in the event of an accident.
Personal auto insurance that is the legal minimum is rarely adequate in the event of an on-duty accident. All evidence gathered at the scene of an accident resulting in injuries can be used as evidence when the case goes to court. Though most accidents are settled before a court hearing, any contested claims by the insurance company will result in a hearing that will probably require retaining an attorney.
Anyone who uses their vehicle in employment will also likely be carrying company property while using the vehicle. Those types of items are not covered in property with a personal auto insurnace policy. A commercial policy can be written for more passengers with a higher total coverage level and include personal work tools as well as the value of the vehicle. Additionally, higher coverage levels for each potential pasenger can be included in the commercial policy.
Commercial auto insurance premiums are generally higher than personal insurance, depending on the driving history of the primary vehicle operator. Individuals who hold a commercial drivers license of any class are considered better trained drivers and will also have a positive effect on comnmercial insurance premiums. Any small business owner who is serious about protecting their company assets as well as providing adequate coverage in the event of an accident needs to seriously consider commercial auto insurance for complete protection.