When you drive for personal reasons—to work, the store, and your children's school—you only need personal auto insurance. However, personal coverage won't cover losses that occur while you're driving for work. For that, you need commercial auto insurance, which is usually more expensive. Here are some indications that you should have commercial coverage on your vehicle.
3 Reasons You Might Need Commercial Auto Insurance
1. You Make Deliveries With Your Vehicle
If you use the vehicle to make regular deliveries as part of your employment, you need a commercial policy. For instance, if you deliver food in your car or use your van to deliver catered meals to events, your personal auto insurance policy won't cover incidents that occur.
2. You Drive Passengers in Your Personal Vehicle
If you use your vehicle to ferry passengers, either as a car service or through a rideshare company, you need commercial auto insurance. Uber® and Lyft® offer some coverage, but it isn't very much, and some protections don't kick in until you've been assigned a passenger. This leaves you vulnerable while you have the app open and are waiting for an assignment.
3. Your Business Owns the Vehicle
If you own a business and the business owns a car, truck, or van, you'll need to cover it with commercial insurance. Your provider will assume that any use you make of a business vehicle will be for business purposes. If you also drive it for personal use, you may be able to arrange for personal—and therefore cheaper—coverage during certain hours or on certain days of the week. This depends on your insurer's willingness and flexibility.
For help from an experienced agent in creating a commercial auto insurance policy, contact Goggans Insurance in Scottsboro, AL. They serve clients in and around Jackson County and have been in business for over 30 years. In addition to car insurance, they also carry home, farm, motorcycle, boat, and RV insurance. Visit their website to request a quote or call (256) 574-3440 to discuss your situation with an insurance agent.