Commercial Auto Insurance
Do you drive a personal vehicle for business? Do you drive a company car, truck, or van? If so, you need commercial auto insurance, as you won’t be covered under your personal policy for accidents occurring while you are working. Commercial auto insurance is designed for vehicles being driven for business purposes; depending on your business, you may need the coverage offered by commercial auto insurance.
Who Needs Commercial Auto Insurance?
Many different types of businesses need commercial auto insurance. You’ll definitely need commercial auto insurance for any company vehicles used for business purposes, any vehicle with commercial tags or plates, and any vehicles registered as commercial vehicles. You’ll also need commercial auto insurance if your employees will be using their vehicles to make deliveries, drop people off at the airport, or any other business-related driving.
If you use your vehicle in any of the following ways, you may be required to obtain commercial auto insurance:
- You use the vehicle to carry equipment
- You transport hazardous or flammable materials in the vehicle
- You transport housekeeping equipment for business use
- You use, carry, or transport cranes, winches or plows
- You hire your vehicle out to tow other vehicles
- You deliver any products, such as food, or any form of wholesale or retail products
- You deliver newspapers
- You work as a trucker or in freight transportation
- You transport people, such as a chauffeur, limousine, or taxi service
While some specific situations and occupations are covered under personal policies, it is always a good idea to ask your insurance agent and see if you need a commercial policy.
Why Do I Need Commercial Auto Insurance?
Simply put, vehicles that you use for business reasons aren’t covered by personal policies. Having commercial auto insurance protects your company from property damage, injury, and liability claims that arise during business use. Additionally, if you operate cement trucks, tractor trailers, construction vehicles, or semi-trucks, you are required by law to have a commercial truck insurance policy. Not only is commercial insurance beneficial, it is sometimes a legal requirement.
What Does Commercial Auto Insurance Cover?
Terms and options can vary greatly from policy to policy, and it is important to understand what exactly is included in your specific agreement. Commercial auto insurance is designed to protect drivers using their vehicles for work and covers a variety of situations. Typical available coverage includes:
- Property damage liability
- Liability coverage for bodily injury to others
- Optional bodily injury coverage for injuries occurring outside the state in which you are insured
- Personal injury to you, your employed drivers, and passengers. This includes medical expenses and lost wages
- Collision coverage associated with any accident, regardless of which party is at fault
- Comprehensive coverage for non-collision damage
- Medical payment coverage for hospitalization, treatment, and funeral expenses
- Uninsured and underinsured motorist coverage
- Non-owned auto coverage, for when you or your employees drive a rented or borrowed vehicle
- Loading and unloading liability
- Substitute transportation while your commercial vehicle is being repaired
- Towing and labor costs
Keep in mind that this list is reflective of the coverage that is available to you. These provisions may not be included in your particular policy, so it is crucial to understand everything that is included when you purchase insurance in order to avoid a nasty surprise later on.
How Does Commercial Insurance Work?
Commercial coverage extends to you and your workers, and can be applied to a single vehicle or to a fleet of vehicles. A commercial policy can include several different types of optional coverage, allowing you to customize your policy into the perfect fit for your needs.
As with personal insurance, if damage occurs to your vehicle, whether due to inclement weather, an accident, or other incident, you can file a claim and receive compensation to offset the cost of repairs. If you or one of your drivers is at fault in an accident that damages another person’s property or causes bodily injury, they can file a claim with your insurance company. Your commercial vehicle liability insurance will cover the cost of the claim up to the limit of the policy.
Some companies also choose to purchase a commercial umbrella policy to cover the costs of a claim if they exceed the limits of a vehicle liability policy. This type of coverage can provide much higher limits, in million dollar increments, and can help protect your business and offset the costs of liability claims or lawsuits resulting from an accident. Depending on the size and scope of your business, this could be a good move that could save you from a dicey situation.
How Much Does Commercial Auto Insurance Cost?
The cost of insurance can vary greatly depending on the size of your business, the number of vehicles and type of vehicles you need to insure, your risks, and the level of coverage you need. Generally speaking, a passenger vehicle will cost less to insure than, say, a dump truck, but insurance companies also offer fleet coverage, which is usually given at a discounted rate.
The driving records of the drivers you’re insuring can also greatly affect your cost. Employees with bad driving records will cause insurance rates to go up, so it’s important to check your applicants’ driving records before hiring. Drivers between the ages of 30 and 65 tend to get the best rates.
Commercial auto insurance is not only beneficial to your business, it is necessary to protect you and your investment from liability claims. Commercial auto insurance shields you from repair and liability costs and is a necessary component of your strategy to protect your business.
Tracking Your Business Mileage & Expenses
Whether you use a business vehicle or a personal vehicle, if you drive for business-purposes you need to be tracking your mileage & expenses to get the biggest possible deduction on your taxes.
There is no better tracking platform for mileage & expenses than Everlance, and we want to show you what it can do.
Everlance Premium: For Individual Users
Everlance is the #1 rated business mileage & expense tracking app in the world, and it is so for good reason.
- No one else tracks your mileage deduction down to the penny and overlays all of your data, including your entire route, turn-by-turn on a map. Everlance was the first to do this, and by far has the most advanced at-a-glance tracking features on the market.
- You can track your expenses manually or automatically. This means that every little expense you see throughout the day can added manually, or you can let Everlance do it for you by syncing your bank account(s) & credit card(s).
- Reporting is a breeze as well. Need to view your day, week, month, yearly stats? Just log in to the dashboard (via Mobile or Desktop device) and you can see & download anything you need. When it’s time to do your taxes, whether that’s using a popular tax software or a tax preparer, all you have to do is export is your data to a CSV (Excel) file and hand it off to your tax preparer or import it directly into the tax software! It’s that simple.
Everlance Teams: For Businesses
With Everlance Teams you get all of the same awesome features as Everlance Premium but with an added bonus of being able to manage unlimited employees and pay one single bill.
For any business that’s managing more than 1 employee, this is the solution, however for those that manage 10 or more it’s a massive time saver.
Everlance Teams eliminates the arduous record-keeping & collecting of expense exports and keeps them all in one place; the cloud.
You can assign admins to manage, add, delete employees. Or you can do it all yourself. Everlance makes it easy to manage an unlimited number of users on one Teams account and again, you only have to pay one bill.
Whether you’re a single user, or a business looking to add 100+ employees – Everlance has a cost-effective solution for you.