Company vehicles allow you to provide on-site services and deliver products, but these investments do come with inherent risks. Unfortunately, many business owners don’t fully understand the value of commercial auto insurance policies until their property has already been damaged or they’ve been named in a litigation suit. Below are some of the most common misconceptions you might have heard about commercial auto insurance.

5 Common Commercial Auto Insurance Myths

1. You Don’t Need Coverage if You Use Your Own Car

Personal car insurance policies are written to cover a certain amount of driving, and often specifically exclude accidents that occur while you’re working. Even if you use your own car to make delivers or visit clients, commercial auto insurance will provide peace of mind and the coverage you need.

2. Seasonal Businesses Only Need Occasional Coverage

Tree trimmers, tourism providers, and other seasonal business owners sometimes cancel their policies in the off-season to save money. However, insurance carriers provide lower rates to those who maintain continuous coverage, so this approach could actually cost you more in the long run.

3. My Policy Covers All of My Employees

While it’s true that some commercial auto insurance policies cover any employee of the business, this isn’t always the case. Some are based on “permissive use,” which only covers employees specifically named in the policy.

4. You Have to Pay the Full Cost Upfront

Insurance companies do prefer customers to pay the entire cost of the policy upfront, and will usually offer substantial discounts to those who do. However, most carriers do have options for business owners who would prefer to pay on a monthly or quarterly basis.

5. Commercial Auto Insurance Includes the Contents of the Vehicle

While commercial auto insurance will usually include racks, compressors, and other equipment permanently attached to the vehicle, items left inside are typically excluded. To protect your valuable assets, you may need to purchase an additional amendment or file a claim against your business property coverage.
 

Since 1993, Barnes & Howell Insurance, Inc. has provided peace of mind and tailored coverage options to business owners throughout Georgia’s Hall and Gwinnett counties. Their bilingual agents take the time to understand your needs and will compare policy options from a variety of carriers to find the coverage you need at the best possible rate. Call (770) 718-0202 to request a free commercial auto insurance quote today or visit them online.