Get the important details before buying commercial auto insurance.
With the rise in popularity of ride-sharing services like Uber and Lyft, not to mention food delivery services like DoorDash and Grubhub, there are more people than ever using their vehicles for business. If you’re using your personal vehicle for work, in any capacity other than commuting to and from your employer, you need to know about commercial auto insurance. Did you know: Small business owners and those who are self-employed are responsible for anything that happens to a work-related vehicle, even if they don’t own it. So, what is commercial auto insurance exactly? Is commercial auto insurance right for you? How can you get started buying commercial auto insurance? All these questions and more are answered below, from your helpful independent insurance experts at Kirby Soar Insurance.
What is commercial auto insurance?
Let’s start from the beginning. Commercial auto insurance is a insurance policy that covers automobiles used for business purposes by that business’ employees or owners. Commercial auto insurance is designed to protect both the business owner and the vehicle operator in case of any damages, injuries, or losses.
What does commercial auto insurance cover?
Commercial auto insurance is much like traditional auto insurance. A broad spectrum of insurance coverages are available. Of course, the type of policy you choose will affect the coverage you are provided. The three different types of commercial automobile insurance policies are liability, comprehensive, and collision. Depending on the type(s) you choose, a commercial insurance policy could cover any of the following
- Bodily Injury (to anyone in either vehicle)
- Damages To Any Vehicle Involved
- Losses of Property (if work related items were destroyed in the accident)
- Legal Fees
- Theft or Burglary (of the vehicle or its contents)
- Natural Disaster
- Uninsured Driver Expenses
Who needs commercial auto insurance?
As mentioned earlier, commercial auto insurance policies are typically necessary when you use your vehicle for work, but not just to commute. Those who are self employed or run a small business and use their vehicles for work-related trips also should consider purchasing commercial automobile insurance. You also may need commercial insurance in any of the following situations:
- If you use your vehicle to transport people or goods for a business
- If you use a vehicle to transport tools or equipment, or for towing a trailer used to conduct your business
- If you use the vehicle for work-related travel
Certain careers also make it more likely that commercial insurance is needed. They include:
- Traveling Sales Representatives
- Rideshare Providers (each company has different requirements for insurance)
- Delivery Personnel
- Commercial CDL Drivers
The cost of commercial auto insurance
The cost of commercial auto insurance depends on several different factors:
- The type(s) of coverage you choose (a standard Liability coverage policy typically costs less than a comprehensive policy.)
- The type of work the vehicle is used for
- The vehicle’s make, model, and condition
With that being said, the national average for a commercial auto insurance policy is $142 per month (or $1,704 per year), assuming a $1 million policy limit. To know if you would be paying more or less, you will need to get quotes from a professional insurance agent, like the ones at Kirby Soar Insurance.
Buying Commercial Auto Insurance in Florida
To learn more about commercial auto insurance contact Kirby Soar Insurance today. We are proud to serve our communities in Polk or Hillsborough County, FL, including areas such as Plant City, Valrico, Lakeland, Mango, Brandon, and Mulberry. And remember, because we are an independent insurance office, we can work with a variety of different providers to find the best, most affordable commercial auto coverage for you. Get a free quote or call our office in Plant City today at (813) 752-1680.