It may surprise you to learn that how you use your vehicle can dictate what type of auto insurance you need. Although a standard policy provides damage and liability coverage in most instances, commercial insurance is often required when a vehicle is used for business purposes. Albuquerque Insurance World can help you save time and money on a comprehensive commercial policy.
Because many drivers use their personal vehicles for work, they often get confused about commercial coverage. How can you tell if you need it? The easiest and most effective way is to contact an insurance agent today. We can help you explore your coverage options based on how you use the vehicle in question. Here are a few basic guidelines we may share with you.
When You Need It
There are some vehicles that always require commercial coverage because they're designed for business use. Tow trucks, buses, tractor trailers, limousines, cement trucks, and taxis are just a few example of vehicles that can only be used for business purposes and, therefore, require commercial insurance. Then there are vehicles like vans and small trucks that may or may not be used for business. Last but not least, there are regular passenger vehicles that are made for pleasure but are occasionally used on the job. How can you determine if it requires commercial coverage?
If your vehicle is used for any of the following functions, a personal auto insurance policy may NOT suffice:
- Carrying tools or other work equipment
- Transporting hazardous and/or flammable material
- Delivering packages, newspapers, pizza, etc.
- Transporting goods of any kind
- Providing limousine or taxi service
- Renting your vehicle out for any of the previous reasons
It is important to add that commercial auto insurance is always needed to cover vehicles your employees operate on behalf of your business. Whether they are making deliveries, running errands, or driving passengers around town makes no difference at all. As long as they are using the vehicle in the course of doing business, it must be protected by a commercial policy.
Types Of Coverage
Just like personal insurance policies, customers are free to choose the coverage amounts and deductibles they need. They may also decide to purchase options separately if they require specialized or additional coverage. As a general rule, the standard commercial insurance policy includes the following forms of coverage:
- Liability for injury to others
- Personal injury to the driver, including medical expenses and lost wages
- Costs associated with the accident, including vehicle and property damage
- Expenses for damages other than collisions, such as vandalism or theft
- Uninsured or underinsured motorist costs
- Replacement transportation costs for rental cars
- Towing and labor costs
Although the standard commercial policy should include most of what you need, it may be necessary to add additional forms of coverage for certain vehicles. Here at Albuquerque Insurance World, we are happy to work with customers to create highly customized policies that meet their specific business needs.
Start Saving Today
As experienced insurance brokers, we shop around to get you the best possible rates on your commercial auto policy. With access to many of the top insurers, such as Progressive, Nationwide, and Safeco, we can help you find the coverage you need in no time. Don't put your business in jeopardy with an inadequate or inaccurate policy.
Call us for a free, no-obligation price quote today! You can also come and see us in person at our office in Albuquerque.