Commercial Auto Insurance

Commercial Auto Insurance

Anyone owning a vehicle with their name on it that is used for a business or that has it registered in the business name should buy a Commercial Auto Insurance Policy.

Do you Need Commercial Auto Insurance or Personal Auto Insurance?

Many customers call us to ask, “What is commercial auto insurance?” They aren’t sure whether they actually need commercial auto insurance, or business auto insurance, for their companies. Figuring out what kind of commercial auto insuranceinsurance — and how much — you need can be confusing. That’s why AIP 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 Business Auto 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 Commercial auto insurance coverage’s, 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.

Personal Auto Commercial Auto
Who Owns the Vehicle(s)?
Individual Owns Vehicle checkmark-small checkmark-small
Sole Proprietor Owns Vehicle checkmark-small checkmark-small
Corporation Owns Vehicle checkmark-small
Rented Business Vehicle checkmark-small
Employee Owns Vehicle Used for Business checkmark-small
Single Vehicle checkmark-small checkmark-small
Multiple Vehicles up to 4 up to 20
Vehicles with Special Equipment checkmark-small
Maximum Gross Vehicle Weight (GVW) 12,000 lbs. Unlimited
Maximum Load Capacity 2,000 lbs. Unlimited
Named Insured Only checkmark-small checkmark-small
Employees or Coworkers checkmark-small
Resident Relative checkmark-small checkmark-small
Vehicle Use
Business Travel checkmark-small checkmark-small
Farming checkmark-small
Pickup or Delivery of Goods checkmark-small
Pickup or Delivery of People checkmark-small
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 checkmark-small
Waiver of Subrogation Against a Third Party checkmark-small
Liability Coverage for Hired or Non-Owned Autos checkmark-small
Liability Coverage for Mobile Equipment checkmark-small

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. Many  policies do exclude commercial auto insurance, 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 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.
  • Comprehensive pays for loss of or damage to automobiles from perils other than collision.
  • 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 coverage pay for loss of or damage to automobiles from collision with another object or upset.

Every policy is different and your individual needs and situation will impact the type of policy you will get and the coverage that will be offered.

Get a Quote Today

Click here to get a commercial quote for your business.