Posted on: 3 Sep 2020
If you are not driving a company owned vehicle, chances are you have never considered the need for a commercial car insurance policy. After all, everyone drives their cars to and from work without having to change their policy. However, if you use your personal vehicle for business tasks during the workday, your personal car insurance may not protect you should the worst happen. When professionals start using their cars for business use, where does your insurance go?
Personal car insurance
If you own a personal vehicle, you must have car insurance. Your personal car policy takes care of you, your passengers and your property in the event of an accident. However, if the accident occurs when you are about to meet a client or transport commercial goods, your claim may be denied.
Commercial car insurance
Your personal insurance covers your usual commuting needs. There is no limit to how much you can drive according to your personal policy, but commuters generally drive less than commercial drivers. When you drive for work, regularly use your vehicle for work-related tasks or drive a company-owned car, you need commercial insurance. The business must adopt a policy to protect its employees and travel.
Whether you work for a company or you are a manager, here are some examples of work-related excursions that require commercial car insurance:
- Your job requires you to drive daily to meet multiple customers
- You transport commercial goods
- You transport passengers for work reasons
- Your vehicle is equipped with permanent work equipment
- Your vehicle is a pickup or work car
- You allow employees to drive your personal vehicle work-related purposes
- You travel with expensive equipment / tools for business
When your personal insurance is sufficient
Not everyone who works needs to buy a commercial insurance. There are some situations where you can use your vehicle during the working day according to your personal policy. Some situations include:
- You take coffee for colleagues on the way to work
- You sometimes drive your personal vehicle to a business meeting
- Your commute is to a single workplace daily
- You rarely drive a errand or do one only delivery to your boss
Decide which policy suits your current needs
It can be difficult to understand which category your daily activity falls into. This is why it is important to have an insurance agent you can trust. If you have unique delivery services or a team of drivers with a fleet of vehicles, you need to make sure that you are well protected on the roads. When accidents occur, it can cost hundreds of thousands of dollars to get back on your feet. With the right insurance in place, you have peace of mind that you are protected.
Having the right commercial car insurance is important to protect your business and your team. Work with trusted insurance agents who understand that each business is different and will require different needs.
Whether you need personal car insurance or commercial car insurance, we can help. Take the time to review your car insurance to ensure you have optimal coverage for your needs, whether it is business or pleasure. Contact Abbate Insurance to get started with your customized insurance.