For professionals who use vehicles for work, there are often concerns raised about whether commercial or personal auto insurance is required. This depends on the industry and what kind of work is being done with those vehicles. Here are some pointers for determining which kind of auto insurance is right for your needs:
Who Owns Your Vehicle?
The owner of your vehicle is an important factor in deciding what type of auto insurance you should carry on it. If your vehicle is owned by your business, commercial insurance is most appropriate. If it is someone’s personal vehicle and used at least part-time for personal driving, it may be better suited to a comprehensive personal insurance policy.
What Type of Vehicle is It – and How Much Does it Weigh?
The size, weight, and type of your vehicle is another important factor in determining which kind of auto insurance is required. Larger vehicles are more difficult and more expensive to insure with personal policies and should likely always be covered under commercial insurance.
How is the Vehicle Used?
There are many different ways to use a vehicle for work. Some of these immediately qualify your vehicle as needing commercial insurance, while others may not. Knowing the difference will help you make the right choice.
Vehicles used for commuting or which are only on the job site a few times a week may be best suited to personal insurance policies. Those that are on the site most of the week or which are actively involved in work-related tasks are better covered by commercial policies.
What are the Liability Limits Required for Your Vehicle?
A requirement for higher liability limits will almost always call for commercial insurance. This is because commercial auto insurance offers much higher limits for liability than personal insurance does.
In general, any auto that is used solely for business purposes will require commercial auto insurance while those that are split between business and personal use – or used much more for personal driving – may be able to get by with personal insurance. The above factors can help you determine which category falls into if you’re still not sure.
For more information on commercial insurance in Phoenix, contact the industry experts at Capital Insurance Services. They can help you choose the right coverage for whatever your business requires – and give you great choices for rates. Visit your local agent or give them a call today!
