Insuring a Business Vehicle

Be Thorough When Insuring a Business Vehicle

Some policies extend coverage to vehicles the company doesn't own, such as rentals.

If your business is on the rise and you are on the go, you may need a vehicle dedicated to business use. Having a commercial auto means you need car insurance that goes beyond your personal auto policy. It is crucial to make sure you have coverage—both for damage to the vehicle and damage or injury you cause while using your vehicle. Your personal auto policy typically will not cover accidents resulting from business use of a vehicle.

There are some questions you will need to answer to obtain business auto insurance. First, who actually owns the vehicle? It will make a difference if it's you or the business or a partner. Second, who will be using the vehicle? Will it be used exclusively for business, or will it also be driven for personal use? To help ensure that the rate being charged is adequate, your agent will ask you to estimate how many miles you will drive the vehicle in a year and where you will be using it.

There are different types of coverage you can choose under business auto insurance. Some policies can be written to allow family members to drive the company vehicle, and some policies extend coverage to vehicles the company doesn't own, such as rentals. How you drive for business—to and from meetings, for deliveries, shuttling clients around—and where you drive are important considerations. Your agent will need to know if you want to insure for medical coverage due to an accident and for damage to your vehicle from things other than collision, such as flying debris or falling trees. Plan on having a thorough conversation with your agent so you get the proper protection for your commercial vehicle.