Commercial Or Personal Car Insurance?

If, like many Americans, your family car is also used for business purposes that could be considered commercial use, you may want to direct yourself into a chair and look over your Florida insurance policy. You’ll need to consider buying a commercial policy or making sure that your current personal car insurance policy covers the car or truck for business use. Whether or not you need a commercial insurance policy depends on how you use your car or truck and what company you have your insurance policy with.

Every insurance company has different guidelines and may surcharge for business use coverage on a personal car or truck insurance policy. If you’re not sure whether business use is covered on your personal insurance policy, it’s important to call your Florida insurance agent. The Progressive Group of Insurance Companies has put together these four questions you may want to ask:

How do companies determine commercial use? One definition could include “engaging in transporting goods for compensation or a fee,” which includes pizza or newspaper delivery, catering, door-to-door consulting services, landscaping services, logging business, day care/church van services or farm-to-market delivery. People in Central Florida who do these kinds of work should consider purchasing a commercial car or truck insurance policy. Do you need more liability coverage than a personal car insurance  policy provides? Generally, a commercial car insurance policy offers higher limits of liability, but less or no coverage in areas that are typically not associated with commercial auto risks.

Do you need special coverage for situations encountered while conducting business? Commercial auto policies usually offer these coverages, and they’re normally not available with personal auto policies. These include hired and non-owned auto coverage and coverage for towing a trailer for business use.

Do you need to list any employees as drivers? Commercial auto policies allow you to list anyone that you employ. You don’t have that option with a personal auto policy. In general, you’ll need commercial auto coverage if the car or truck you use is owned by a corporate partnership or driven by employees, or if it’s used to haul tools or equipment weighing more than 500 pounds, make deliveries or heavy enough to require Florida state or federal filings. For more information about commercial auto insurance, visit progressiveagent.com.

Did You Know? If, like many Americans, your family car is also used for purposes that could be considered commercial use, you may want to steer yourself into a chair and look over your insurance policy. For more information about commercial auto insurance, return to our homepage.