If you are a business owner, you need to get a business permit and other legal documents required by law for your business. And, if you need vehicles for your business operations, then you need to get it insured. To get you started, you can request for commercial vehicle insurance quotes so that you will have an idea on how much your monthly premiums will cost, and whether or not you qualify for any discounts. Before you go ahead and get commercial vehicle insurance, there are some things that you need to take into consideration.
Regular vs. Commercial Vehicle Insurance?
When dealing with insurance providers, you must take note that regular car insurance is different from a commercial one. Simply put, individual insurance is for private vehicles, while commercial insurance is for vehicles used for business.
Vehicles can be considered as commercial if they are used to transport goods or equipment as well as to deliver services. The insurance premiums are paid by the business owner even when other people are driving the vehicles.
Check your car’s registration. If you registered the car under the name of your business, then you definitely need to get a commercial vehicle insurance.
If the car is registered under your name, you can still get a commercial insurance if you are the sole owner of the business and you use your vehicle primarily for business.
Driver of the Vehicle
If other people, such as your employees, will be driving your vehicle, then you need commercial insurance. Keep in mind that your insurance provider will ask you to list the names of your employees who will be driving the vehicle.
If there is a need to add the following policies to a regular car insurance coverage, then you most likely need a commercial insurance:
- Coverage for a third party
- Waiver of subrogation
- Liability coverage for hired or non-owned vehicles
- Liability coverage for mobile equipment
If you are still not sure whether you need a commercial insurance or not, you probably have to determine if the vehicle is going to be used regularly for business purposes. Here are some of the situations that would require commercial car insurance:
- Transporting clients to and from offices and different job sites.
- Carrying office equipment and other tools for business use such as ladders, office supplies, computers and others.
- Delivering goods and services such as food, newspapers, or flowers.
- Towing and trucking services.
- Transport services such as taxis.
It is very important that you get the right insurance plan for your car to make sure that you have protection not only for yourself, but also for your business and your employees. Discuss your options with insurance providers and make sure that you carefully study their quotes and inclusions. You should also take the time to read the contract before you sign your name on the dotted line.