Small businesses and self-employed persons, lend me your ear. Your personal car insurance may not cover your vehicle. Why? Your underwriter could consider your vehicle as a work automobile. There are some reasons they have gotten to this conclusion. If you use your car for work purposes other than commuting, you will need to look into commercial auto insurance. You can break it down by assessing many things. |
* Do you use your vehicle to courier goods or messages? * Is it registered under your business or corporation's name? * Are there ladders or racks attached meant to support your business? * Do you use it for a limo or taxi service? * Does your vehicle weigh around 10,000 pounds?
If you said yes to any of these questions, you do fit under the category of needing a commercial auto insurance policy. However, you're probably asking why your personal policy won't cover even these needs. With a business car, liability concerns increase, which means you will need more coverage than what a personal policy can offer. So, what extensions of liability coverage come with commercial auto insurance? Let's start with looking at policies meant for truck drivers, as they are more likely in the need for those types of coverage. An individual named policy covers you whenever you're driving a vehicle you do not own. Commercial auto insurance will also provide policies that cover trailers or trucks with work equipment. In the event of a trailer exchange agreement, non-owned trailers need coverage, which is also under commercial auto insurance. How can small businesses and self employed people benefit under such underwriting? Perhaps you need to put your car in the shop for a repair, which makes it an inoperable vehicle. Under a policy named as such, you would have the costs of a temporary replacement taken care of. What's more, vehicles not owned by your company can be covered for you and your employees. And when you buy a new vehicle, your policy will be extended automatically.
Cars, trucks, and trailers for business use need this type of underwriting to cover all this, but it also is needed to respond to the unique situations and incidents that can occur during work. Some states require business owners to have such policies on their vehicles. Because of the amount of driving and transporting you will be doing, you may need to opt for even more coverage than normal. This is because the minimum may not cover a larger problem. Assess your business and driving needs to see how much more liability is needed. Start your search by asking your personal policyholders where to go for your business's vehicle policy. You can also ask fellow business owners or self employed compatriots about where to find the best policies.
It isn't always easy going on your own with a business or freelance work. However you should feel confident knowing that your vehicle is covered with the right policy that works for you.
Make sure you are protected with this commercial auto insurance Louisiana residents love: http://www.americantruckinsurance.com.
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