Many people use their cars for their business, and a personal auto insurance policy may not cover such use. But since auto insurance is required in Florida whether the vehicle is for personal or commercial use, auto insurance companies offer commercial auto insurance to fulfill this need.
The difference between commercial and personal auto insurance
Commercial auto insurance is similar to personal auto insurance in many ways. While personal car insurance also covers liability, medical payments, collision, comprehensive and uninsured motorist, it differs in eligibility, exclusions, coverages, definitions and limits. So these policies is underwritten and rated in a very different way.
Many people have the wrong assumption that a commercial auto insurance is only for big companies. The truth is, everyone who uses his auto for business must get one. Here are some coverages under a commercial insurance policy.
- Bodily injury cover (liability): Pays for bodily injury/death caused by you. In most cases, you also get a legal defense.
- Property damage cover (liability): Pays for damage to another person’s property, caused by your vehicle.
- Medical payments, personal injury and no-fault coverage: Pays medical expenses of your driver and other passengers, regardless of who caused the accident.
- Uninsured motorist coverage: Pays your medical injuries and damages to your vehicle ( in some cases) in case the accident was caused by an uninsured/hit and run driver. Under-insured driver may also be covered.
- Collision coverage: Pays for damages to your vehicle when it hits/is hit by another vehicle.
- Comprehensive coverage: Pays for damages due to vandalism, theft, fire, flood and other problems.
Who qualifies for a commercial auto insurance policy?
You are in need of a commercial auto insurance policy if :
- You charge fees, to transport people or goods in your vehicle.
- The vehicle is used to conduct a service.
- You need a higher liability coverage because of your work.
- You are carrying a considerable amount of equipment or tools or pulling a trailer, with your vehicle for use in your business.
- The vehicle is used by employees and/or the ownership of the vehicle vests in your partnership or business.
Note that running a commercial vehicle on a personal auto insurance policy is dangerous because if an accident occurs, the insurance company will likely reject your insurance claim. If the insurance company comes to know (after it has paid you) that you filed a false claim, you might be sued for fraud. So avoid this. Get a commercial auto insurance policy today. Don’t worry, Anderson & Associates can help you find a good and affordable commercial auto insurance policy in Palmetto, Florida.
