There are many situations that work, errands, and travel can present and how you use your vehicle in these different roles matters! Imagine you use your personal vehicle to do normal day-to-day tasks, such as drive to work and run your children back and forth to practice; however, you ALSO use your vehicle in your landscaping “side” job to transport materials needed to various job sites. If you are involved in an accident, will there be applicable auto coverage to protect you for damages or will you be left with a claim that is “DENIED?” Do you know whether you need business auto insurance or personal auto insurance for your vehicle?
How is Business Auto Insurance Different from Personal Auto Insurance?
A personal auto insurance policy is designed for individuals or household members for protection against auto accidents while using their vehicle for “personal” use, such as driving to work, travelling, or transporting your family to sporting events, but excludes coverage for situations where you may use your vehicle (either partially or solely), while in the scope of business matters.
A commercial insurance policy provides a broader scope of coverage options and higher limits of liability for individuals and businesses when the vehicle(s) are utilized for a combination of business and personal or solely for the purpose of business. There are many different add-on coverage endorsements that provide protection for the many unique business circumstances that occur in day-to-day life.
Determining Whether You Need a Personal or Commercial Auto Insurance
There are some basic factors to consider when determining which auto insurance policy will provide the type of coverage you need for your situation. Below are just some considerations:
First of all, how you use your vehicle is a huge deciding factor. Consider whether you are using your vehicle strictly for personal use, combination of personal and business, or solely for business use. If your vehicle is used for ANY type of business operation, you need a business auto insurance policy.
Another consideration is regarding how or to whom the vehicle you operate is registered and titled. If the vehicle is registered or titled in a corporation name, but you use it for personal reasons, you need a commercial auto policy. If the vehicle is titled and registered in your name, a personal auto insurance policy may be what you need. Contact your local Alabama independent insurance agent with any and all of your questions regarding this.
One final thing to consider is the type of vehicle you own and operate. The weight and size of your vehicle will help determine if you have the right type of auto insurance protection. Larger size and heavier weight equate to higher costs of damages, should you become involved in an auto accident.
Ask Yourself These Questions…
Before contacting your local Alabama independent insurance agent, take the time to ask yourself the following questions:
- Do you have a job that requires you to use your vehicle at times?
- Do other people use your car? Do you rent or lease your car to anyone?
- Do you use your vehicle to transport others for a fee?
- Do you deliver goods to others or businesses?
- Does your vehicle weigh over 10,000 pounds?
- Does your vehicle come equipped with a hydraulic lift, toolbox, or ladders that would be used for business?
- Is the vehicle you use registered or titled to a business?
Answering yes to any of the questions above may mean you need a commercial auto insurance policy for the type of protection you need, should an auto accident occur.
Once you have done this, feel free to contact us at Burkett & Associates Insurance Agency so that we may assist you in finding the right type of auto insurance protection you need and deserve, within a budget you can afford.