Disclaimer:
The material in this blog and on this website is informational only. Each individual situation is unique, you should use proper discretion in consultation with your own insurance agent or attorney before undertaking any insurance transaction or making any insurance related decision. The author of this blog and our company expressly disclaim responsibility for any adverse effects that may result from the use or application of the information included in this blog and / or website.
Should I insurance my vehicle with a personal auto insurance policy or a commercial business insurance policy? This is the question that many auto owners need to ask. Many business owners insure their auto under a personal auto insurance policy, even though they use the auto for business purposes. If a vehicle is used for business purposes, it should most likely be insured under a business auto insurance policy. Here are some bits of information to consider when making your auto insurance decision:
Is the vehicle owned in the name of a corporation, LLC, or Partnership? Most personal auto insurance policies cannot cover a legal entity other than an individual. Business / commercial auto insurance can cover the corporation or partnership.
Do employees drive the vehicle? Personal Auto Insurance policies usually do not allow employees to be added as covered drivers. If employees drive the vehicle, then a commercial auto insurance policy should be used.
Do other employees drive their own vehicles on behalf of the business? If so, a commercial / business auto insurance policy should be used. There is a coverage called Hired and Non-Owned Auto insurance which can be added to commercial auto insurance policies but not to personal auto insurance policies.
Has the vehicle been modified with special equipment- Such as shelving, boxes, and other permanently installed equipment? If so, a business auto insurance policy should likely be used. Personal auto insurance policies typically cannot add coverage to insure additional equipment on the vehicle.
Is the vehicle being used to transport commercial goods, or used commercially to transport people? If so, a commercial auto insurance policy should be used. Personal auto insurance policies are not designed to provide insurance protection for commercial uses.
Do you need to list a third party as an additional insured on your policy? If so, a business commercial auto insurance policy should be used. Personal auto insurance policies usually are not able to add third parties as additional insureds.
Is a commercial trailer being towed? If so a commercial auto insurance policy should be used. Personal auto insurance policies typically cannot add insurance coverage for commercial trailers.
These are not all of the situations that need to be considered when making your auto insurance decision. These are a list of the few of the common situations which are faced.
Our office provides both personal and business auto insurance policies. For a free auto insurance quote for consultation, please contact:
Dan Baxter
Baxter Insurance
805-963-4048
Disclaimer:
The material in this blog and on this website is informational only. Each individual situation is unique, you should use proper discretion in consultation with your own insurance agent or attorney before undertaking any insurance transaction or making any insurance related decision. The author of this blog and our company expressly disclaim responsibility for any adverse effects that may result from the use or application of the information included in this blog and / or website.
