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Associated Insurance Professionals, Inc.
Action Insurance Professionals - AIP Action Insurance Agency
A New Mexico Corporation

New Mexico - Colorado - California - Arizona - Nevada
Licensed Agents and Brokers

 

Commercial Auto Insurance

Do I Need Commercial or Personal Insurance?

Many customers call us to ask, "What is commercial insurance?" They aren't sure whether they actually need commercial vehicle insurance, or business insurance, for their companies. Figuring out what kind of insurance — and how much — you need can be confusing. That's why Progressive provides the simple guide below to help you decide whether personal auto insurance or commercial auto insurance is right for you.

How to Determine if You Need Commercial Vehicle Insurance

Personal auto insurance policies can provide enough auto insurance coverage for some businesses, especially if you're also driving your vehicle for personal use. However, if you require specific business auto insurance coverages, high Liability insurance limits, operate an unusual vehicle or haul special equipment, transport goods or people, or have other special needs, then you'll need insurance for commercial cars, trucks and so forth.

The chart below illustrates the key differences between the protection offered by a personal auto insurance policy and a commercial vehicle insurance policy. For example, a personal auto insurance policy will provide coverage if you own the vehicle but not if your employer owns the vehicle.

  Personal Commercial
Who Owns the Vehicle(s)?
Individual Owns Vehicle
Sole Proprietor Owns Vehicle
Corporation Owns Vehicle -
Rented Business Vehicle -
Employee Owns Vehicle Used for Business -
Vehicles
Single Vehicle
Multiple Vehicles up to 4 up to 20
Vehicles with Special Equipment -
Maximum Gross Vehicle Weight (GVW) 12,000 lbs. Unlimited
Maximum Load Capacity 2,000 lbs. Unlimited
Drivers
Named Insured Only
Employees or Coworkers -
Resident Relative
Vehicle Use
Business Travel
Farming -
Pickup or Delivery of Goods -
Pickup or Delivery of People -
Other
Maximum Liability – Combined Single Limit (CSL) $500,000 $1,000,000
Maximum Number of Job Sites Per Day 2 Unlimited
Maximum Weight of Supplies & Equipment 500 lbs. Unlimited
Coverage for a third Party as an Additional Insured -
Waiver of Subrogation Against a Third Party -
Liability Coverage for Hired or Non-Owned Autos -
Liability Coverage for Mobile Equipment -

A Note About Personal Auto Insurance Policies

If you decide to purchase a personal auto insurance policy, it's important that you tell your insurance company that you'll be driving the vehicle for business so that they can make a note on your policy. Without that note, if you're in an accident while using your vehicle for business, your accident may not be covered by your personal auto policy.

 

  • Owned Automobiles covers liability arising out of the ownership, maintenance, or use of owned automobiles
     
  • Personal Injury Protection coverage is included for vehicle passengers under No-Fault law provisions.
     
  • Uninsured Motorists protects insured's against who are not contributory negligent against bodily injury caused by negligent uninsured and hit-and0run motorists.
     
  • Hired Automobiles covers the liability for the use of hired automobiles in your business.
     
  • Non-owned Automobiles covers the liability for the use of non-owned automobiles in your business. An example would be an employee using their own car to run an errand for you.
     
  • Brand Form Drive Other Car Coverage provides coverage for individual named on endorsement and spouse for use of Non-owned car, sometimes referred to as "Borrowed Car" coverage.
     
  • Comprehensive pays for loss of or damage to automobiles from perils other than collision or upset.
     
  • Specified perils pays for loss caused by; fire, theft, windstorm, hail, earthquake, flood, malicious mischief, or vandalism and the sinking, burning, collision, or derailment of any conveyance transporting the covered auto.
     
  • Collision pay for loss of or damage to automobiles from collision with another object or upset.

Get a Commercial Auto Quote!

Click above to buy business auto insurance!

 

You can call our customer service representatives Monday through Friday
9 am - 5:30 pm and Saturday 9 am - 2 p.m. to give you personalized phone quotes.

 

 
 
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