Many people have vehicles that they use for work purposes. Perhaps you are one of them. It might be surprising to know that some people who have personal auto insurance on their vehicles should really have commercial auto insurance. You may be thinking that this would only apply to companies with fleet vehicles, but it can also be applicable in situations where there is only one vehicle being used. That sole vehicle does not necessarily have to be a company vehicle either. The following points will help you to determine if you may need to upgrade your personal policy to a commercial auto insurance policy.
What do you do in your vehicle as it relates to your job?
For many people, the answer to this question is simply commuting back and forth. However, if you are an individual that works in certain trades, your vehicle may be used throughout the workday to perform your job. Examples of jobs that may require commuting and job use are road salespersons and pizza delivery individuals. These types of positions may be better suited for commercial auto insurance. However, if you simply use your vehicle to make a few food pick-ups for co-workers and yourself during the month, personal auto insurance will likely suffice.
Why do you need to use your vehicle for work?
Think of the ways you use your vehicle during the work week. For example, driving your car to lunch with work colleagues as passengers is not considered conducting business. However, if you are a sales representative who uses your vehicle to transport clients to restaurants, your driving use could be viewed as business related. It is possible for a personal insurance policy to refuse to cover damages or injuries sustained due to you having the wrong type of policy.
How often do you transport things or people related to work?
If your job consists of you hauling expensive tools to work sites, you likely need commercial insurance to protect you against theft and damages. This is commonly the case with skilled trade contractors who use their own trucks for business. However, a new breed of "haulers" are surfacing due to the growing popularity of Ride-share programs. If you get paid to drive others around through any of these programs, you may need to consider upgrading to a commercial auto insurance policy to protect yourself if you are involved in an accident with paying passengers.
An auto insurance consulting compnay, such as Metropolitan Insurance Service Consultants, is a good resource to use to determine whether you have the best policy based on your specific circumstances. They may be able to bundle or recommend other types of insurance with your existing or new policy. For example, some companies have policy plans that allow policyholders to bundle their auto and homeowners insurance policies, which could result in savings.