Do You Need Commercial Auto Insurance?

There are two basic considerations to decide if you need a Commercial Auto Policy (CA) vs a Personal Auto Policy (PA):

How is the Vehicle to be Used?  

As an example, you own a van; the question is, do you drive that van for business purposes? A van used to haul merchandise for a fee or used to transport passengers will need CA but if it is a van used only for personal use it would normally just need PA.


Another example might be when a carpenter owns a pickup.  Does he use the pickup only to go to job sites and haul his tools, equipment and supplies, or does he use the pickup for both personal and business purposes? How you answer these questions will determine what type of coverage you need.


The Type of Vehicle

There are certain types of vehicles that require CA regardless of how they are being used. A Tow Truck, a Dump Truck and most Truck Tractors will require CA but there many other types of vehicles that require CA.  Also it is important to note that if you drive a certain type vehicle a Commercial Driver License (CDL) is required.


If you are involved in an accident using your vehicle for business purposes, you may not be covered.  If you are not sure if you should carry Commercial Auto Insurance, contact us and we will be happy to help find you the right coverage.