If you use your car in any capacity in regards to your business, you may be wondering if a personal auto insurance policy is enough. A personal auto insurance policy will only cover but so much and commercial policies extend liability amounts due to business. You may be surprised that you need a commercial policy for your vehicle. If you’re in the Charlotte, NC area and aren’t sure if your personal policy is enough for your vehicle, Jim Boyce Insurance is here to guide you. Let’s review the key points for needing a commercial policy.
Are you Commuting, or Using Your Vehicle to Provide Business Services?
If you you are driving out of town or other long distances regularly for your business, a commercial auto policy is needed. Other than your regular commute or personal drives, your car becomes a business necessity when you are using it to drive to more than one or two regular job sites. Also, consider that you are putting mileage and wear and tear on your vehicle as well as becoming at greater risks for accidents due to the constant use. In addition, if you are using your vehicle to transport goods- including doing deliveries for items purchased by your customers- a commercial auto insurance policy is in order. What about if you started a small, local car service and are using your vehicle to drive people to and fro. A commercial policy is a must because you now have more than one person to be liable for in the case of an accident! Many small businesses don’t that these points into consideration until it is too late.
There are weight class considerations for vehicles that will make your car more likely to require a commercial policy. If you are driving something larger than a large SUV- including towing and semi-trucks or trailers- a commercial policy is in order. These vehicles have higher liability because of the damage they can cause and incur in an accident. Thus, special coverage is often required.