If you have vehicles you use specifically for business purposes, you may need to buy commercial auto insurance. Commercial insurance differs from personal auto insurance. Commercial insurance policies often have different eligibility requirements and provide different coverage levels. However, many of these terms are very similar to personal auto insurance policy terms.
You need to purchase commercial auto insurance if the vehicle in question is used to perform tasks related to your business other than commuting to work. If the vehicle is used to transport goods or people for a specific fee, then you need commercial insurance. If you use the vehicle to haul tools or equipment, you need a commercial policy. If you tow a trailer specifically for business purposes you need a commercial policy. If employees use the vehicle for business purposes a commercial policy is needed. If a corporation owns the vehicle, it definitely needs a commercial insurance policy.
Most commercial auto policies include coverage that is very similar to personal auto insurance policies. Most commercial policies provide liability, collision, comprehensive, personal injury protection and uninsured motorist coverage. However, most commercial policies require higher limits than personal auto policies.
There are also special insurance extensions that can be bought only for business use. For example, non-owned auto insurance provides your business with coverage if an employee is involved in and found responsible for an accident while using their own personal vehicle to do company business in. Hired auto liability provides your business and employees with liability coverage when you rent, lease, hire or borrow other vehicles for business use. Hired auto physical damage covers any physical damage to a rented, leased, hired or borrow vehicle for business use.
If you use a vehicle primarily for business use, you need to purchase commercial auto insurance. It is very similar to personal auto insurance, however some of the rates and requirements are different. There are also extra extensions you can add to your auto insurance policy that only apply to businesses. Contact Coast Auto Insurance Services Inc. about purchasing the insurance you need for your business. They work with and represent 50 different insurance companies. This allows them to shop around and find the best policy to fit both your business needs and budget. They have been serving clients in California since 1986.
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