If you don’t operate a fleet of business vehicles you may never have considered commercial auto insurance. However, you could need a commercial policy even if you don’t fall into that category, particularly if you use your own vehicle for work purposes other than commuting. To help you avoid confusion, it’s important for you to be clear on what commercial auto coverage makes sense for you.
Driving a Personal Vehicle for Work-Related Purposes
Personal car insurance generally will not pay to repair damage incurred or cover injuries you obtain while you’re transporting people or goods for money, mostly because the liability and property damage risks are too high. Driving friends to a concert or grabbing food for coworkers back at the office is covered. But for instance, if you use your vehicle to deliver pizzas, commercial auto insurance is needed.
There’s no limit to how much you can drive under a standard auto policy, as long as it’s for personal reasons. However, for sales managers who regularly use their car to visit stores within your region, or account representatives who frequently drive far and wide to meet — and possibly transport — clients, you likely need commercial coverage to account for the high liability risk your company could face if an accident was to occur.
Be cautious of what you’re hauling. Commuting to a job is one thing. Bringing along heavy tools or equipment is another. For instance, a construction worker hauling a trailer, ladder rack, expensive drills, and other supplies faces a higher chance for property damage and theft than your average commuter — and probably needs commercial car insurance as a result.
Are you Covered?
Deciding between personal and commercial auto insurance involves many mitigating factors and questions, so it requires a thorough discussion with your New Jersey commercial auto insurance agent.
If you use your car primarily or frequently for business, you probably need a separate commercial policy. Although, if you only occasionally use it for business purposes, your insurer could be able to adjust your personal auto policy, for an added cost, so that it includes any work-related driving of yours.
New Jersey commercial auto insurance is readily accessible. As you may have assumed, it is typically more expensive than personal auto coverage due to its specialized protection but rates are still affordable and it is well worth it to protect your personal and professional assets.
About SB One Insurance Agency
At SB One Insurance Agency, we have served the businesses and residents of New Jersey, New York, and Pennsylvania for more than 60 years. We are a wholly-owned subsidiary of SB One Bank, the region’s premier banking institution, and we are prepared to offer you personal, business, employee benefits, and risk management solutions. To learn more about our coverage options, contact our specialists today at (888) 990-0526.