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When do you need to get commercial auto insurance?

That is a great question to ask when starting the process of insuring your business. Commercial auto is a great policy to have in place when you are using your car for your business.

  • Transporting goods or people for a fee in your vehicle like Uber/Lyft drivers.
  • Conduct a service with your vehicle like food trucks.
  • The type of work you do requires you to carry higher limits of insurance like long haul truck drivers.
  • Hauling equipment used for your business like contractors that have heavy tools in their trucks or attached trailers.
  • If you have employees that use a work truck for business purposes or if the truck is registered in your business name.

There are certain exclusions on a personal auto policy for these types of vehicles so make sure you check that out before getting coverage for your work vehicles.

When working with certain companies that have certificate of insurance requirements make sure you are getting that information to the agent when getting a Commercial Auto Insurance quote to make sure your getting all the correct coverages and add ons needed to meet their requirements. Also, if you are registered with the USDOT providing that information upfront will help avoid any issues after binding coverages.

When it comes to small businesses, the question of what is personal and what’s work related can often be hard to define. People use their own vehicles for a variety of business purposes – such as travelling to job sites, transporting items or making deliveries – but this isn’t usually covered by standard auto insurance policies; meaning you’ll need something special in case of an accident on company time (if your morning commute doesn’t count).

Especially with regards to car insurance, you may think that one policy fits all. But when there’s a business involved – whether as the owner or operator of a vehicle – things are different. Commercial auto policies can provide additional protection with higher coverage limits and more complex legal considerations than personal auto plans. For example, commercial insurance typically includes every employee with valid license under its umbrella of insureds … so any time they get behind the wheel your company is protected no matter whose driving! 

Commercial auto insurance covers business vehicles

As a self-employed business owner, you understand the importance of protection and safety. To ensure your vehicle is appropriately guarded from unforeseen events related to its use for work purposes, commercial auto insurance can provide comprehensive coverage with superior liability limits over that offered by personal plans. It may include vehicles used for:
  • Transporting goods or equipment
  • Drive clients or employees
  • Perform a service that you’re paid for
  • Charge passengers a fee to ride in your vehicle
  • Charge people a fee to transport goods in your vehicle
  • Haul heavy, work-related loads
  • Tow a trailer used for business

So, what about personal vehicles occasionally used for work? 

This coverage is called HIRED NON OWNED AUTO coverage or commonly known as HNOA. Protect yourself and your employees while they’re out running work errands in their personal vehicles. Purchasing hired and non-owned auto insurance provides liability coverage if an accident happens, as well as protection when you rent or lease a vehicle for business use. This type of policy ensures the legal bills resulting from any mishaps are covered — but unfortunately it does not cover physical damage to your car so make sure your employees are aware of that cost as well. 

HNOA covers personal, leased, and rented vehicles used for work


Your personal car insurance won’t cover business use

If you use your car for work, it pays to double check with your insurance provider. Without proper coverage, an accident while driving on the job could leave you footing a hefty bill – but personal auto policies may offer limited protection in certain cases!
If you are ready to get an auto insurance quote, please be ready to upload a list of drivers/vehicles for us to give you a proper quote. There will be a template for you to use if you do not have one in place. 

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