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When Do You Need a Commercial Auto Policy?

When Do You Need A Commercial Auto Policy

When do you need a Commercial Auto Policy for a vehicle that you use personally and for business purposes?

  1. If the vehicle is Registered and Titled to your Business, you will need a Commercial Auto Policy regardless of how you use the vehicle.
  2. If an employee drives your vehicle, you need a Commercial Auto Policy. Be sure to add any employee drivers to your policy and get them approved by your Insurance Company before you allow them to use your vehicle. You can get a driver cleared even before you hire them, if you make it part of your interview process.
  3. If you attached a trailer to your vehicle that is used for your business, you need a Commercial Auto Policy.
  4. Some style/size vehicles require a Commercial Auto Policy.

If your car is Titled and Registered to you personally, you don’t use a trailer for your business and there aren’t any employees that drive your vehicle, you can keep your vehicle on your current Personal Auto Policy. You will want to make sure that your vehicle is rated for Business Use.

This is how I have my truck insured. I own it personally, no one else drives for business, and I don’t use a trailer for business. I have this insured on my Personal Auto Policy, but it’s rated for Business Use because I will use it to drive to meetings during the day, drive to property inspections, go to the bank, post office or run other errands for work.

I hope you found this tip helpful. If you’d like help with your Auto, Home or Business Insurance give us a call 585-663-2004.