According to the U.S, Bureau of Labor Statistics, just over 10% of the American workplace is self-employed. This means that over 15 million people may use their car or truck for work purposes – from real estate agents to personal accountants and lawn care professionals. If you fall into one of these categories, you may have wondered if you should insure your vehicle commercially, rather than choosing a personal auto insurance policy.
Businesses have many concerns which private individuals don’t share, such as increased liability risks. At Anderson & Associates Insurance Group, we help Sarasota and Manatee drivers choose the right insurance for their situations every day. Here are some points to consider.
Determining Which Auto Insurance Policy is Right For You
- If you use your vehicle largely for business purposes, a commercial auto insurance policy may be right for you. However, if you only travel to 1 or 2 places a day, or simply use your vehicle for commuting to your office space, a personal auto insurance policy may be completely acceptable.
- Heavy-duty vehicles can cause more damage if they’re involved in an accident. Since the liability is higher, special insurance coverages may apply. Commercial auto insurance policies typically offer higher limits than personal auto insurance policies. If the vehicle you drive for work purposes is larger or heavier than a normal size car or truck, a commercial auto insurance policy will probably be required. Examples of these types of vehicles are tow trucks or commercial trailers. Pickups, vans, or utility vehicles with a gross weight exceeding 10,000 pounds also qualify for commercial insurance.
- If in the course of conducting business you transport people – such as a limousine service – or you deliver items which belong to other people, a commercial policy is likely required. These types of careers may include delivering food, documents, supplies or materials to another party.
- If you tow special equipment over the road, such as lawn mowers or heavy construction equipment, a commercial policy is best for your situation. Other commercial vehicles would include vehicles equipped with snowplowing equipment, cooking or catering equipment, bathrooms, altered suspensions, hydraulic lifts, or racing equipment.
Additional Coverages Available With a Commercial Auto Insurance Policy
Obtaining commercial insurance for your vehicle may give you the opportunity to enjoy additional coverages, such as:
- Non-owned vehicle coverage protects you and your employees even if you are operating vehicles not owned by your company.
- Single-deductible options apply if you tow a trailer or use other specialized equipment. As these items can be quite expensive, you can extend your coverage to protect those items.
- Rental reimbursement coverage helps cover the costs incurred when you need to temporarily replace an inoperable commercial vehicle.
If you are trying to decide between a commercial and personal auto insurance policy, call the experts at Anderson & Associates Insurance Group. We will walk through you through the ramifications of each option, and get you the best possible coverage for your situation. For expert and professional advice on obtaining auto, home, life or business insurance, we are the best call in the Sarasota and Bradenton area.