What distinguish commercial auto insurance from personal car insurance is basically on the car’s purposes. If the car you are going to protect with auto insurance is used commercially, or in other words, for business-related purposes, you should instead choose to buy commercial auto insurance. Accordingly, commercial auto insurance includes several different aspects compared to personal auto insurance.
Several Conditions Oblige You To Buy Commercial Auto Insurance
Business-related purposes may seem too general for you to be able to decide whether or not you must have it for your cars. Basically, a car must be covered by this commercial insurance if you use it for delivering goods, messenger services, taxi services, and limousine services.
In addition, those cars registered as business/corporation/partnership, rented or leased, completed with cooking and catering equipment, bathrooms, hydraulic lifts, racing equipment and even altered suspensions may be eligible for commercial insurance. More remarkably, if the cars are regularly driven or used by your employees, the cars must be covered by more than personal car insurance.
Refer to These Types of Commercial Insurance
Commercial car insurance is different from personal insurance, not only because of its car’s different purposes. It impacts to the coverage and limit you have to buy. If you use your car to help you run your business, for instance for food delivery, the more risks or hazards your car would likely experience in an accident. It affects the amount of insurance you have to pay to cover your property and any damage to your products.
However, since there are various types of vehicles used to run business, there are also various types of commercial car insurance. You may find business auto insurance, truck insurance, cargo insurance, pickup truck insurance, tow truck insurance, van insurance, and dump truck insurance.
Check on the Regulations
Basically, you may still need to protect your vehicles with liability coverage, comprehensive coverage and several other policies, even if it is covered by commercial car insurance. In other words, the coverage included to this insurance is not much different from those in personal car insurance. However, the amount of limits distinguish one from another.
In addition, commercial-used vehicles must fill requirements of federal regulations, if the vehicles operated from state to state. Since every state may have different regulations, this fillings is obliged to fulfill by commercial-used cars. Only by being approved by these federal regulations, your vehicles can be eligible for commercial insurance policies.