Anyone with a personal vehicle understands the necessity of insurance; to protect loved ones and personal property. It is also a fact that it is a legal requirement in almost every state. It is not quite so easy to decide when you need commercial auto insurance.
Personal auto insurance does not cover all vehicle usage. If you are a business owner, and you have one or more vehicles that are used exclusively for the business, then you need to arrange coverage with a commercial auto insurance agent.
Do you need commercial auto insurance?
A few things must be taken into account when deciding the type of auto insurance you need.
Vehicle registration: A car that is registered in the name of your business must have commercial auto insurance coverage. If the car is registered in the name of a private person, this does not necessarily mean that personal auto insurance is applicable, however. In many cases, a small business will have a car registered in the name of the business owner, but the car is used predominately for business purposes. In a situation like this, you will need a commercial auto insurance policy on the vehicle.
Who drives the car? A commercial auto insurance agent can provide guidance. If employees of the company drive the car, then a commercial policy is required. With a commercial policy, the employees that have access to the vehicle will be listed.
Business use: A car that is used, on average, three times a month for business purposes, should have commercial auto insurance. However, a commercial policy is not required in all instances. Some types of business owners, such as real estate agents, can cover their vehicle with a personal policy. Since there are certain businesses that do not need commercial coverage, if you are in doubt always check with a commercial auto insurance agent to make sure you are fully covered. For more info visit Boardwalk Insurance Group, LLC.
