Having the right type of auto insurance policy is extremely important. There are basically two types of auto insurance, personal auto insurance and commercial auto insurance. To meet the mandatory insurance requirements in the state of Maryland, most drivers can purchase personal auto insurance. However, there are times when a commercial insurance policy is needed.
A general rule of thumb that can be used to determine what type of policy is needed is that if a vehicle is used more than half the time for business purposes, commercial coverage is probably in order. Special types of vehicles or vehicles used to haul other equipment also probably need a commercial policy. The transporting of goods or people for business purposes should also steer those seeking insurance away from personal auto coverage. Another point for consideration is that personal auto policies do not afford some benefits that commercial policies do. These commercial benefits are often desirable to business owners.
In Maryland, the Maryland Auto Insurance Fund is available to help those in need of commercial auto insurance. The fund was created to provide insurance to drivers that cannot obtain liability insurance elsewhere. In order to purchase a policy through the fund, a driver must be able to show that they have tried to purchase coverage but were denied the opportunity to do so. This denial usually occurs due to a bad driving record based on tickets, accidents and serious violations such as DUI. The fund also requires Maryland residency and a Maryland license or registration.
While commerical auto insurance premiums are higher than personal auto insurance premiums, the additional coverages and protections provided by the commercial policy are designed to protect business owners. The Maryland Auto Insurance Fund can assist business owners with obtaining the coverage mandated by the state as well as the coverage best suited to their business needs.