When Does a Personal Vehicle Need Commercial Auto Insurance? 

You might need commercial auto insurance if you use your personal vehicle for business purposes.

Personal auto insurance typically covers your vehicle for personal use, such as commuting to and from work, running errands or taking road trips.

However, personal auto insurance might not provide adequate coverage if you use your vehicle for business activities.

Here are some scenarios where you might need it for your personal vehicle:

• Frequent business use—If you regularly use your vehicle to transport goods, equipment or clients for your business, this type of auto insurance is essential.

• Employee drivers—If your employees drive your vehicle for business purposes, you’ll need commercial coverage to protect against potential liabilities.

• Business-related deliveries—Using your vehicle to deliver goods, such as food or packages, often requires commercial auto insurance.

• Ridesharing services—If you drive for ridesharing companies like Uber or Lyft, your personal auto insurance might not cover accidents that occur while you’re working. This type of auto insurance or a rideshare endorsement can help fill this gap.

Commercial Auto Insurance Benefits

Commercial auto insurance offers several benefits over personal auto insurance, including the following:

• Higher liability limits—Commercial policies typically offer higher liability limits, providing better protection in case of an accident.

• Specialized coverage— includes coverage for specific business-related risks, such as hired and non-owned auto coverage.

• Comprehensive protection—Commercial policies often cover a wider range of vehicles, including trucks, vans, and trailers, ensuring all your business vehicles are protected.

Contact Us

Contact Strawn & Co in McDonough, Georgia, for a commercial auto insurance quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.