Do I need commercial insurance on my truck or can I leave it on my personal auto policy?
That’s a great question and one that I hear a lot. There are many issues to consider before a question like that can be answered, and a good agent will know what to ask. Here are a few questions I like to ask before I can make a recommendation:
- Is the vehicle owned by an individual, corporation, LLC or some other entity?
- How many people drive the vehicle? Just you, or do you have employees that drive occasionally?
- What mileage radius does your business operate in?
- How many job sites a day do you visit?
- Do you have any signage or advertising on your vehicle?
- Do you transport goods or people for a fee? In other words, what is your business, or what do you do?
- Do you have ladder racks or permanent tool boxes attached to your vehicle?
- Do you tow a trailer in relation to your work?
- Are your employees, if you have them, likely to be driving their own cars for your business?
Once I have a firm grasp of what your business does and how you do it, I am able to make a recommendation. I do have companies that will allow one vehicle on the personal auto policy to be used for business, with a small business use surcharge.
However, we have to be very careful because personal policies are written with the average private citizen and their needs in mind, while commercial policies are designed to address the unique needs and situations that arise in commercial use. We need to make sure we write your policy properly so that if you file a claim, it’s paid. You don’t want your car insurance company to deny your claim simply because your particular business use violated the terms of your personal car insurance policy.
It’s important to know that commercial insurance is not always more costly than a personal auto policy. Many times when I write a commercial policy the premium is lower than what it was on a personal auto policy. So, PLEASE don’t try and second guess your agent. Countless times I have gone around and around with a client, convinced the vehicle was being used for commercial purposes. But the client, believing he/she will save money by not providing me all the info I need to help them, flat out hides the fact that the vehicle is used commercially. When they finally relent and work with me, they are almost always surprised by how reasonable the cost is. Remember, I am your insurance advocate–I work for you. Getting you the insurance you need at the lowest premium is my goal.
Still not sure? No problem. L&M Insurance Group can help you determine the coverage you need based on how your vehicles are used in conducting your business and who will be driving your vehicles. L&M Insurance Group has been serving the car insurance and commercial auto insurance needs of Riverview and surrounding communities for more than 10 years. Call 813-672-4100 for more information about commercial auto insurance (or car insurance in general), or click here to contact me by email.