Do You Need Business Auto Insurance?

July 28, 2015
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Do you drive to work or do you drive for work? Sometimes it is hard to differentiate between the two uses and it can feel like your insurance company is interrogating you when they are asking about your daily vehicle usage. Here is what you need to know to tell what kind of insurance you need to adequately protect your car and liability in the event of an accident.

If you transport people or cargo for a fee, then you need to have a business auto or Commercial Auto Insurance policy. Because people who drive for work spend much more time on the road than the average person, they are at a higher risk for being involved in an accident. These people may find themselves in unfamiliar neighborhoods. Because of the risk, many personal insurance companies specifically exclude business auto usage. In the event that you are involved in an accident, the insurance company has the right to deny coverage and you can find yourself at substantial financial loss in the event of an accident.

It is important to note that there are some business auto usages that are acceptable under a personal auto insurance policy. If you are a realtor and are giving a client a ride to see a home, this is usually acceptable usage because you are not getting paid to actually drive the person. On the other hand if you drive for the local pizza joint as a delivery boy, you will need a commercial auto insurance policy. If you are not sure, the best suggestion is to talk to your insurance adviser or find your policy declarations page.

Stay Protected: Keep Your Policy Up To Date!

In order to be fully protected, you always want to make sure that your policy takes all of your auto usage into account. Call your insurance company every six months to go over usage and mileage. This way, the insurance company is adequately assessing and charging for the risk presented. Not being covered correctly can have a negative effect on insurance rates as well. People who are not insured to the adequate risk are receiving subsidized rates and unfairly affecting the rates of other drivers.

Most of the time, business auto policies are not that much more expensive than personal auto insurance policies. You may pay a bit extra each month, but this gives you the peace of mind that in the event of an accident, you do not have to worry about having the right coverage. If you are unable to afford a commercial insurance or auto policy and continue to drive, you run the risk of being liable for an accident and losing any and all assets that you own.

It may not seem like much to replace a few pizzas if you are a food delivery driver, but if you are hauling several thousand dollars in tools or other equipment, you could quickly find yourself in a financial jam. Another advantage of having a commercial auto insurance policy is that these policies will also cover you if someone sues you for liability purposes. People may see your nice professional truck and think that you have thousands to afford. The truth may be that you are a business owner driving to make ends meet.

Be safe and make the right choice. If you think you may need a business auto policy, please contact the professionals at Southern Insurance Group for your comprehensive review. Not only will we review your coverages to make sure you are protected correctly, but then we will shop your rates through the leading Business auto carriers in the marketplace for your best pricing. We can be reached at 352-243-9000 opt 1 for new quotes or send us an email request at [email protected] or visit us online!