Commercial Car Insurance
commercial car insurance
Personal Or Commercial Car Insurance: Which Is Right For You?
If, like many Americans, your family car is also used for purposes that could be considered commercial use, you may want to steer yourself into a chair and look over your insurance policy.
You’ll need to consider buying a commercial policy or making sure that your existing personal auto policy covers the vehicle for business use. Whether or not you need a commercial policy depends on how you use your vehicle and what company you have it insured with. Every company has different guidelines and may surcharge for business-use coverage on a personal auto policy.
If you’re not sure whether business use is covered on your personal policy, it’s important to call your insurance company or agent. Texas Prime Insurance and Progressive Insurance has put together these four questions you may want to ask:
- How do companies determine commercial use? One definition could include “engaging in transporting goods for compensation or a fee,” which includes pizza or newspaper delivery, catering, door-to-door consulting services, landscaping or snowplowing services, logging business, day care/church van services or farm-to-market delivery. People who do these kinds of work should consider purchasing a commercial vehicle policy.
- Do you need more liability coverage than a personal auto policy provides? Generally, a commercial auto policy offers higher limits of liability, but less or no coverage in areas that are typically not associated with commercial auto risks.
- Do you need special coverage for situations encountered while conducting business? Commercial auto policies usually offer these coverages, and they’re normally not available with personal auto policies. These include hired and nonowned auto coverage and coverage for towing a trailer for business use.
- Do you need to list any employees as drivers? Commercial auto policies allow you to list anyone that you employ. You don’t have that option with a personal auto policy. In general, you’ll need commercial auto coverage if the vehicle you use is owned by a corporate partnership or driven by employees, or if it’s used to haul tools or equipment weighing more than 500 pounds, make deliveries or heavy enough to require state or federal filings.
For more information about commercial auto insurance, visit www.texasprimeinsurance.com
Did You Know?
If, like many Americans, your family car is also used for purposes that could be considered commercial use, you may want to steer yourself into a chair and look over your insurance policy. For more information about commercial auto insurance, visit progressiveagent.com.
About the Author
Jesus R. Olivares is an insurance agent at Texas Prime Insurance located in Austin Texas. He holds a General Lines Property and Casualty License and General Lines Life and Health License in Texas.
Wher should I get my car insurance from?
I have seen a lot of car insurance commercials but none of them have convinced me which one is clearly the best you can tell me one even if there is no commercial for it and also does aaa work
I can explain this much:
Most of the premium you pay does not pay for eventual accidents. Most of your premium pays for the Insco’s rent, their phone bill, the electric bill, the clerk’s wages, the furniture in their offices, and so on. Insurance is a business, and more than anything we pay for them to exist.
So, the basic cost of your premium is SET by how much it costs the Insco to exist, and it can not and will not go below that.
That having been said, collisions can and do happen…
While one collision every 20 years won’t hurt much, any more than that and the effect starts to snowball, to the point where one can be construed a high risk driver (citations and driving violations, even without collision, affects the risk factor as well).
The cost of high risk drivers is shared by all of us, meaning the premium everybody pays includes a portion set aside to pay for collisions etc… Once again, the premium is SET by this cost and will not go below that, no matter how much money the Insco has to fork over, it’s not free money, we will pay for it one way or the other.
Thus, the fewer collisional damages that have to be covered, the lower the premium.
And, I don’t want to pay for someone else’s high risk if I’m low risk myself.
So the Insco’s realize this, and while some insco’s insure high risk drivers, others do not.
As a general rule, even IF you have a perfect driving record, should you get your insurance through a company that does insure high risk drivers, then your own premium will be higher as well. Conversely, if you can get insurance via a company that plain refuses to accept high risk drivers, then your own premium is lower (but your driving record has to be good to perfect).
So, first it pays to drive safely.
Once (or if) you have a perfect driving record (nothing in the past 5 years), or maybe one little ticket I think is ok, you should check with Nationwide, Geico, and Allstate (in that order, their premiums go up slightly from one to the next).
Now you can shop long and hard, and you might find someone a few dollars cheaper (maybe), but as a rule, if you’re with Nationwide, you won’t get much cheaper, it just doesn’t happen.
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