It is easy to understand why we need vehicle insurance. After all, we would like to keep your family and your property safe. Moreover it is legal in most countries and states to get auto insurance. However, it often gets confusion as to when to get a commercial vehicle insurance. There are certain vehicles that do not get covered under the regular auto insurance policy. For example, if you run a business and use a vehicle or a number of vehicles to run the business, then you will need commercial insurance for these vehicles. You must have insured your business, so why not the vehicle that is being used for running it.
Let us take a look at some of the aspects that will need to be kept in mind when thinking about commercial vehicle insurance.
Vehicle registration: Find out under whose name the vehicle is registered. If it is registered under the business, then you need to get commercial insurance. Even if it is registered in your name but being used solely for business, then too, one needs to opt for the commercial insurance.
Driver of the vehicle: Check out the people or employees in your business who are using the vehicles. Commercial insurance policies would want you to list out the name of the people or drivers using the vehicle so as to underwrite the risk on the vehicle properly.
Check the business use: The vehicle that is being used for getting regular business more than 3 times in a month is defined as being used for commercial purpose and hence, a commercial insurance is the right choice here. Only commuting to and fro from your business will not constitute business use. Generally, the commercial vehicles are used for carrying equipment related to the business form one place to another. They could be carrying supplies, products, raw material that could be hazardous and may also be equipped with, winches, snowplows or cranes to carry out specific tasks. They might also be sued for delivery of goods like wholesale, flowers, retail, etc.
However, not all business will need a commercial insurance policy for their vehicle. For example, lawyers, real estate agents, accountants, doctors, and consultants carry their clients and often are covered under a personal auto policy. Check with your insurance agent if you are still not very sure about the commercial auto insurance and whether you need it.