Do You Need Personal Or Commercial Car Insurance?

If, like many Americans, your family car is also used for commercial purposes, you may want to steer yourself into a chair and look over your personal or commercial state or California car insurance policy.

You need to consider buying a commercial policy or make sure your existing personal state or California car insurance policy covers the vehicle for business use. Whether or not you need a commercial policy depends on how you use your vehicle and what company you have it insured with. Every company has different guidelines and may surcharge for business-use coverage on a personal auto policy.

If you’re not sure whether business use is covered on your personal policy, it’s important to call your insurance company or agent. Direct Choice Insurance .com has put together four questions you'll want to ask:

• How do companies determine commercial use? One definition could include “engaging in transporting goods for compensation or a fee,” which includes pizza and newspaper delivery, catering, door-to-door consulting services, landscaping, logging, or snowplowing services, day care and church van services or farm-to-market delivery. People doing this kind of work should consider purchasing a commercial state or California car insurance policy.
• Do you need more liability coverage than a personal auto policy provides? Generally, a commercial state or California car insurance policy offers higher limits of liability, but less or no coverage in areas that are typically not associated with commercial auto risks.
• Do you need special coverage for situations encountered while conducting business? Commercial state or California car insurance policies usually offer these coverages, but they’re normally not available with personal policies. These include hired and non-owned auto coverage and coverage for towing a trailer for business use.
• Do you need to list any employees as drivers? Commercial auto policies allow you to list anyone that you employ. You don’t have that option with a personal auto policy. You’ll likely need commercial state or California car insurance coverage if the vehicle you use is owned by a corporate partnership, driven by employees, used to haul tools or equipment weighing more than 500 pounds, make deliveries, or heavy enough to require state or federal filings.

For more information about commercial state or California car insurance, visit www.Direct Choice Insurance .com

Did You Know?

If, like many Americans, your family car is also used for commercial use, you may want to steer yourself into a chair and look over your insurance policy. If you’re not sure whether business use is covered on your personal policy, it’s important to call your state or California car insurance company or agent.