It’s easy to see why you need personal auto insurance-;you want to protect your car and your family, and in most areas, it’s required by law. However, it can be difficult to tell when you need commercial auto coverage. Certain vehicle usages aren’t covered under personal policies, and if you own a vehicle just for business use, you need commercial insurance. Below, you will learn what you need to consider when buying commercial auto insurance.
Registration
When buying commercial insurance from Gilmartinagency.com, you first need to look at the registration of the vehicle. If it is in the name of your business, you need commercial coverage. If it’s in your name, though, personal coverage may not be enough. In many cases, small businesses have owner-registered vehicles-;if you use it primarily for business, you need commercial insurance.
Who Uses It
Another indication that you need Commercial Auto insurance Scranton PA is if others at your company use the car. A commercial policy allows you to designate employee operators, so the insurer can properly assess the level of risk.
Business Usage
The next question to ask yourself is “Do I use the vehicle for business on a regular basis?” A vehicle getting business use is defined as being used for business more than three times a month. If this applies to your situation, you may need commercial insurance. Business use includes the following situations.
? Carrying tools
? Carrying hazardous materials
? Towing
? Delivery of products
? Newspaper delivery
? Trucking
? Taxi driving
Business Usage
Not all vehicle usage requires the purchase of Commercial Auto iin Scranton PA, and some forms of business usage are covered under a personal policy. Tell your insurance agent about your business’ needs so they can create a policy that meets your needs. A part-time business is covered under a personal policy, as long as you drive less than 100 miles per day or less than 500 miles per week.
The tips listed above are informational in nature and shouldn’t be relied upon as legal advice. Read your insurance policy for information on your coverage, as well as its terms and conditions.
