The ins and outs of commercial vehicle insurance may feel overwhelming at first. To put it simply, this type of insurance may be crucial for you if you’re driving work-related vehicles, but what happens if you also want to use that same vehicle on the weekend for recreational purposes? Does commercial auto insurance cover personal use?
If you’re worried about what commercial auto insurance can and can’t cover, here’s a brief guide that may help you understand the differences between car insurance for business and personal use, when commercial coverage applies, and how you may be able to save money with Infinity Insurance Agency, Inc. (IIA).
What is commercial auto insurance?
If you use vehicles for your business, you may need a commercial auto insurance policy rather than a personal one. Depending on your policy, this type of insurance may help pay for damages to a third-party that you cause while operating a work-related vehicle.
So, who might need commercial auto insurance? Here are just a few examples of businesses that may benefit from this type of coverage:
- Landscapers
- Lawn care and maintenance crews
- Carpet cleaning companies
- Janitors and handymen
- Painters
- Fence installation crews
- Flooring installation contractors
If your vehicle is necessary for your business to operate, then commercial auto insurance may be the option for you.
The difference between commercial vehicle insurance vs. personal
If you’re confused about the differences between personal and commercial auto insurance, here are two simplified definitions that you may find useful:
- Personal auto insurance: This insurance is typically meant for everyday driving, such as commuting, grocery shopping, school drop-offs, or road trips.
- Commercial auto insurance: This type of insurance is usually used for work-related purposes, like transporting equipment to a job site or delivering packages for your business.
If you use your car for business but only carry personal auto insurance, you may not be covered if an accident happens during work-related use.
Can you use a commercial vehicle for personal use?
If you’re the business owner, you can usually use your work vehicle for personal driving if the vehicle is mostly used for business purposes. You may want to check your policy, though, because some commercial vehicle policies may exclude driving for personal use.
Employees may also be able to use company vehicles for personal reasons, but only with the permission of the employer. If a non-employee uses the vehicle, even with permission of the owner, coverage may not apply if an accident occurs during a personal trip.
Can an employee use a personal vehicle for work?
If an employee drives their own car for a business-related task, their personal auto insurance usually won’t cover them in the event of an accident.
That’s where hired and non-owned auto insurance (HNOA) may be useful. HNOA can help cover your employees who use their personal vehicles for work-related purposes. It may also apply to employees who drive leased or rented vehicles to fulfill their jobs.
How much is commercial vehicle insurance?
The cost of commercial auto insurance may vary based on a combination of factors. Premium prices may depend on:
- Your location
- The type of business you run
- The number of vehicles your business uses
- You and your employees’ driving history
- Your team size
- The type of vehicles your business drives
That’s why it may be helpful to compare multiple quotes through IIA so you can find the best rate for your budget.
How to find affordable commercial auto insurance
If you’re worried about how expensive insurance may be, IIA may be able to help you. We work with 20+ carriers so you can tailor a policy that aligns with your needs and price.
Here are a few ways that IIA may help you keep your premium affordable:
- Adjust your deductible: An agent can help you increase or decrease your deductibles for certain coverages to match your needs. A higher deductible may lower your monthly payment.
- Bundle policies: Depending on the state you live in and the provider you choose, you may be able to combine commercial general liability and commercial auto insurance for a lower premium.
- Compare quotes: Prices may vary widely from one carrier to another. We can help you compare quotes from multiple carriers so you can find the best rate for you.
- Available discounts: If you have a clean driving record or can pay your premium in full, you may qualify for an auto insurance discount.
Commercial auto insurance with IIA
If you’re on the hunt for commercial auto insurance, it may be helpful to work with a trusted agency like IIA. Our Spanish-bilingual agents can help you find a policy that aligns with your requirements and industry, without a language barrier.
Ready to find coverage? Call IIA today at 1-855-478-3705 or head to our website to get a free personalized quote online!