Do You Need Commercial Auto Insurance?

two men in construction vests sit in the bed of a white truck eating lunch at their construction work site

The question of whether you need commercial auto insurance for your vehicle can be a tricky one, so let’s figure it out together! Most of us already know that you need to carry personal auto insurance for vehicles not used for business since it’s required in most states. This type of insurance covers you while you’re dropping the kids off at school or driving to the grocery store. However, when it comes to commercial auto insurance, things can be a little less clear. 

If you have a small business, you’re most likely focused on growing your business, keeping your customers and employees happy, and ensuring that your equipment (including your work vehicle) is in good working condition. With all that going on, it’s easy to forget about insurance but it's important to make sure that you and your business are covered in the event of an auto accident.

 two women in jeans and yellow vests load boxes into a white work van with gloves

What is Commercial Auto Insurance? 

Commercial Auto Insurance, also known as commercial vehicle insurance, business insurance, or business auto insurance—is an insurance policy that is needed to protect any cars, trucks, and vans you use in business operations

Commercial auto insurance is a policy that can help protect your vehicles from physical damages and liability claims for situations and usages that are not covered in a typical personal auto insurance policy. This type of policy can insure many different types of commercial vehicles including standard automobiles like company cars and a large variety of different business trucks and vehicles. Commercial auto insurance can provide broader coverage than personal auto insurance. 

Get a quote now. Call 1-800-INFINITY today! 
 

How Do I Know if I Need Commercial Auto Insurance? 

a man in a plaid shirt and work belt takes off his work gloves while looking at the tools in his work truck

Deciding whether you need commercial auto insurance is a critical business decision and one that requires a bit more information about your business. Although not hard and fast rules, here are a few examples of criteria that insurance agents use to determine whether you are eligible for commercial auto insurance: 

  • Vehicle use: If the vehicle you are insuring is used for business purposes, that’s a good indication that you may need commercial auto insurance 
  • Vehicle weight: Business-use vehicles over 6,000 lbs. will typically require commercial auto insurance coverage. Examples of these vehicles include Ford F-250, Ford F-350, Chevy/GMC 2500HD, Chevy/GMC 3500HD, Dodge 2500, Dodge 3500, box trucks, food trucks and larger commercial vans. 
  • Company logos: Vehicles that have company logos or decals will often require commercial auto insurance coverage, although this doesn’t necessarily apply to part-time sales representatives for companies like Mary Kay. 
  • Number of daily stops: Vehicles that make over three stops per day are often considered good candidates for commercial auto insurance 

In addition to the criteria shown above, if you perform any of the following tasks in association with your business, you may be eligible for commercial auto insurance:

infographic depicting the different activities commercial auto insurance covers

You said Eligible, Does That Mean I’m Not Required to Have Commercial Auto Insurance?  

Good question! The answer is it depends.  There are some instances where you won’t be required to have commercial vehicle insurance, but it would be beneficial if you did!

Here are some occupations that might not be required to carry commercial auto insurance: 

  • Sales representatives 
  • Consultants 
  • Real estate agents 

However, every situation is different. If you’re not sure about whether or not you need to carry commercial auto insurance, speak with one of our agents today!  They will provide you with all the information you need. 

If a vehicle is used for your business or other tasks related to your business, you will need to have commercial vehicle insurance. 

Now that we’ve gone over the basics, let’s get to the best part, knowing that your business is protected!  

What Does Commercial Auto Insurance Cover? 

two men in yellow and orange safety vests talk through the open window of a work truck hauling equipment 

With commercial vehicle coverage, you and your employees are able to drive knowing that you, your vehicle, any passengers or employees, plus any other cars involved in an accident may be covered. Moreover, if anyone was injured in a collision, having Commercial Auto Insurance may help to cover you and your business.  

Commercial Auto Insurance offers other benefits you may not have known about!  You might also want a Commercial Auto Insurance policy for the reasons listed below:  

  • Comparable Rates: Commercial Auto Insurance helps protect you, your family, and your business at an affordable rate.
  • Added Value: Commercial Auto Insurance is a deduction, plus you may have access to discounts not available on Personal Auto policies.  
  • Broader Coverage: Commercial Auto Insurance is comprehensive and customizable to your needs. 
  • Business Growth: Having Commercial Auto Insurance could give you access to jobs that require proof of insurance or additional insured coverage. This might mean better job opportunities, more money, and the possibility of increased business growth. 

Here are the most popular coverages you might add to your Commercial Auto Insurance policy: 

  • Personal Injury Protection – this type of coverage can help pay for the medical expenses and wage loss for accident-related injuries suffered by the occupants of your insured business vehicles, regardless of fault. 
  • Collision Coverage – this type of coverage helps to pay for accident-related damage to your insured business vehicle.   
  • Comprehensive Coverage – this type of coverage helps cover damages caused to your insured business vehicle from acts of vandalism or theft, and also by weather or fire. 
  • Rental Reimbursement – this coverage provides you with a rental vehicle up to your policy limit and while your business vehicle is under repair due to a covered loss.  
  • Liability Coverage – this type of coverage helps to pay for physical injury damage expenses to others and to other people's property if you found at fault for an accident. If you are sued, then this can also help pay for your legal expenses.  
  • Tools And Equipment – This coverage helps to pay for losses involving the essential equipment used in your business operations. 
  • Trailer Insurance – this type of coverage helps to pay for damages caused to your trailer used for hauling company equipment or materials. 
    • Some trailer policies do have some restrictions regarding the length and weight. We accept all common size trailers, however the combined gross vehicle weight of the pulling vehicle and the single trailer is not more than 54,000 pounds. 

Another great perk Commercial Auto Insurance comes with is separation of business and individual policies. Even better, Commercial Auto Insurance usually offers higher limits and more robust coverage. 

Myth vs Fact

A popular belief is that Commercial Auto Insurance policies are too expensive. Actually, Commercial Auto Insurance policies might be more affordable than Personal Auto Insurance polices because they have rating factors and discounts that are not available for Personal Auto policies. Call us today and ask an agent how a Commercial Auto Insurance policy can add greater value, protection, and growth to your business. 

Don’t put yourself or your company at risk by not carrying Commercial Auto Insurance. Instead, have peace of mind knowing you have commercial vehicle coverage in case you or your employees are at fault in an accident. Now is the time to consider your options for Commercial Auto Insurance! 

Get a quote now. Call 1-800-INFINITY today! 
 

Visit our Knowledge Center for more information on Commercial Auto Insurance. 

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