News | World Insurance Associates, LLC

When Do You Need Commercial Vehicle Insurance?

Written by Gregory McLaughlin | Feb 8, 2023

Business owners know the importance of preparing for the unexpected. You never know when an accident may happen, or when your commercial vehicle may be vandalized or stolen. That's why it's crucial to have commercial insurance for your vehicles.

Commercial vehicle insurance is designed to protect businesses from the financial losses that can occur when their vehicles are involved in accidents, damaged, or stolen. This type of insurance can cover a wide range of vehicles, including cars, trucks, vans, and buses.

But how do you know if you need commercial vehicle insurance? Let's take a look at some of the most common situations where commercial vehicle insurance may be a good idea.

What is Commercial Vehicle Insurance?

Commercial vehicle insurance helps protect businesses from the financial losses that can occur when their vehicles are involved in accidents, damaged, or stolen. This type of insurance can cover a wide range of vehicles, including cars, trucks, vans, and buses.

It's important to note that commercial vehicle insurance is different from  personal auto insurance. Personal auto insurance typically doesn't cover vehicles used for business purposes, which is where commercial vehicle insurance comes in.

Commercial vehicle insurance can provide coverage for physical damage and liability risks not covered by personal auto insurance. This can help protect your business in the event of an accident, theft, or damage to your vehicle.

What Does Commercial Vehicle Insurance Cover?

Commercial motor vehicle insurance is designed to cover vehicles used for business purposes. Here's what's covered:

  • Physical damage to your vehicle: This can include damage from an accident, fire, theft, or vandalism.
  • Liability: This can help protect you if you're found responsible for an accident that damages another person's property or injures someone.
  • Medical payments: This can help cover the cost of medical treatment for you or your passengers if you're in an accident.
  • Uninsured and underinsured motorists: This can help protect you if you're in an accident with a driver who doesn't have insurance or doesn't have enough insurance to cover the damage they've caused.

When Do You Need Commercial Vehicle Insurance

1. If you use your personal vehicle for business purposes

If you occasionally use your personal vehicle for business purposes, you may want to consider getting commercial vehicle insurance. Personal auto insurance policies often exclude coverage for business use, so if you're in an accident while using your personal vehicle for business, you may not be fully protected. Insurance for commercial vehicles can provide additional coverage above and beyond what your personal auto insurance policy offers.

2. If you have a fleet of vehicles

If you own or operate a fleet of vehicles, commercial vehicle insurance is a must. This type of insurance can provide coverage for all of the vehicles in your fleet, as well as any drivers that operate them.

3. If you transport goods or passengers

If you regularly transport goods or passengers for business purposes, you'll need commercial vehicle insurance. If you get in an accident or your vehicle is damaged while you're transporting goods or passengers, your commercial policy can provide the coverage you need to repair or replace your vehicle.

4. If you haul tools or equipment

Even if you don't transport people or goods, if you regularly haul tools or equipment for your business, you'll need commercial vehicle insurance. A good auto insurance for commercial vehicles plan will help you recover the costs of tools and equipment damaged or lost in an accident.

5. If your industry is high-risk

Some industries are considered higher risk than others regarding commercial auto insurance. If you drive a taxi, delivery truck, or other commercial vehicles, you'll likely be charged higher rates for your insurance. But even if your industry isn't traditionally considered high-risk, if you have a bad driving record or are involved in several accidents, you may also be charged more.

6. If you're leasing or financing your vehicle

If you're leasing or financing your commercial vehicle, your lender will likely require you to have insurance. Be sure to check with your lender to find out what type and amount of insurance they require before shopping for a policy.

7. If your employees operate your vehicle

If you have employees who operate your commercial vehicle, you'll need to insure it. This will protect you from liability if your employees are involved in an accident while operating your vehicle. Your insurance company will need to know how many drivers will be using the vehicle and their driver history, so have this information ready when you're shopping for a policy.

8. If you run a delivery service

Delivery drivers often use their personal vehicles to make deliveries. If you run a delivery service, you'll need to insure your drivers while they're making deliveries. 

This will protect you from liability if they're involved in an accident while making a delivery. This is often called non owned and hired auto insurance. You'll need to know how many drivers will be making deliveries and their driver history when you're shopping for a policy.

Get Your Commercial Vehicle Insured Today

Auto insurance for commercial vehicles can help protect your business from financial losses resulting from accidents and other events. Whether you have a fleet of delivery trucks or a single work van, commercial vehicle insurance can provide the coverage you need. When shopping for a policy, be sure to compare quotes from multiple insurers to get the best rate.

Learn more about World Insurance's business insurance offerings today and receive a commercial vehicle insurance quote..