What is commercial auto insurance?

Many businesses own vehicles. It might be a single company car or an entire fleet. It could be a semi-truck and trailer, or it could be a food truck. 

Whatever the case, all business vehicles must be insured, just like personal vehicles, but through a commercial auto insurance policy rather than a personal policy.

It covers things like property damage, bodily injury, medical expenses, and legal costs incurred in automobile accidents.

Business owners need to make informed decisions when purchasing commercial auto insurance. Adding the wrong people to the policy could drive up your costs considerably. 

Your policy can cover you (the business owner), as well as employees, family members, and other drivers. In emergency situations, anyone can drive a vehicle and benefit from coverage. However, if they drive in non-emergency situations, you should add them to your policy as listed drivers.

Understand that each person you add to the policy can increase the costs. Their personal driving record will affect your premiums. Exercise caution in case employees have speeding tickets, accidents, or DUIs that might drive up your costs.

If your business owns a vehicle, it cannot be covered by personal auto insurance. So, where does that leave business owners who have a single vehicle for both personal and business use? 

Thankfully, you do not necessarily need to purchase two types of insurance. This is because commercial auto insurance usually covers an employee driving a company vehicle even if it is for personal use. 

However, if we’re talking about personal vehicles occasionally used for work-related purposes, you’ll need to buy what’s called hired and non-owned auto insurance.

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You need commercial auto insurance if you use a vehicle for business-related purposes. However, if you do not use a vehicle for business purposes, or you only occasionally use a personal vehicle for work-related needs, you do not need a commercial auto insurance policy. 

In the first instance, your personal auto insurance will cover your vehicle (if you’re not using it for anything related to the business). In the second case, a hired and non-owned auto policy will give protection for occasional use. 

However, we strongly recommend that business owners take a long, hard look at their vehicle use and honestly estimate how much they use a vehicle. Often, a commercial policy is the better choice. 

Of course, if your business regularly uses a vehicle or you own a fleet, they all must be covered by commercial auto insurance.

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If you use a trailer for business purposes, you’ll want to ensure it’s covered by your commercial auto insurance. 

Unfortunately, most policies don’t automatically include trailer coverage. You must add it to the policy manually. If you don’t, then the vehicle will be covered but not the trailer. 

If you use a trailer for business purposes, whether regularly or occasionally, it must be covered. We can help you find the right coverage configurations and limits to suit your needs now and in the future.

Yes, you do need commercial auto insurance if you intend to drive for Uber.

Ridesharing companies like Uber have disrupted the travel industry, bringing competition for taxi companies, limousine companies, and others. In addition to introducing new competition for these companies, they’ve opened up new career opportunities for people across the country. 

If you’re thinking about driving for Uber (or any other ridesharing company), you probably have a lot of questions. How do you track your mileage? How do you get paid? What about insurance?

That last one is one of the most important. You will need to purchase commercial auto insurance before you can start driving. Make sure to discuss your needs with the agent, too. You’ll want a policy that reflects the risks you face as a rideshare driver, which has important ramifications for things like policy limits and out-of-pocket costs.

At Kickstand Insurance, we’ve worked with rideshare drivers across the US to help them find affordable commercial auto insurance that doesn’t sacrifice protection. We can do the same for you.