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Commercial Vehicle Insurance

A commercial vehicle is one that is necessary to further your business enterprise. This includes transporting goods or people, such as an auto parts delivery driver or a driving instructor. A commercial vehicle also includes vehicles that carry necessary tools to complete a particular job. Take the time to research what constitutes a commercial vehicle in your state. Do not risk loosing your coverage by carrying the wrong type of insurance.

It is also important that you contact a variety of insurance providers as each company has its own set of rules and regulations regarding the insuring of a commercial vehicle. Do as much research as possible and be sure to protect not only your vehicle or vehicles, but also the financial well-being of your company. Remember that your vehicle is essential in helping your business succeed.

Business and personal use

Often, vehicles are used for both personal and business reasons. In this situation, a combination of commercial and personal insurance is required. For example, the driver who uses his vehicle 30% of the time for business pays commercial coverage only for that time. Of course, insurance providers have their own set of rules and regulations that determine how your policy cost is calculated.

Keeping a physical record of the business use of your vehicle is also important for tax reasons. For example, if your vehicle logs 10,000 miles in a year for business, you can write off each mile against your gross income. Business owners will also be able to write off any additional purchases made strictly for each commercial vehicle. This includes additional storage devices, accessories like GPS (global positioning system) direction assistance, emergency roadside kits, or additional theft prevention devices like alarms and wheel locks.

Fleet insurance

Be sure to discuss the pros and cons of each company’s fleet insurance options carefully when deciding upon an insurance provider. Some companies can save your business as much as 20% when you insure more than one vehicle under the same policy. A fleet refers to more than one commercial vehicle operating for the same business.

Additional coverage

Basic commercial vehicle insurance covers damages caused by collision. This type of commercial insurance will also only cover the amount required to return your vehicle to its original state before the accident; it does not cover any of the property inside the vehicle. Additional coverage will be required to cover the cost of any item located within or on the vehicle. This type of coverage will enable the vehicle owner to recoup any loss related to the theft, damage, or the total loss of any item within or on the vehicle.

Tips and suggestions

• List your commercial vehicle insurance under the company name, not your personal name.
• Each individual employee who operates your vehicle should be covered under your policy. If employees drive their own vehicles, additional coverage may be required. Each employee may also be required to take a drug test before operating a vehicle for your company. Additional drug testing may also be required immediately after an accident to determine fault.
• Only carry the necessary amount of commercial vehicle coverage. If you only use your vehicle 30% of the time for business, then you should only be paying 30% of your policy towards business rather than personal use.
• Just like a personal car, a commercial vehicle would also benefit from additional safety features as well as theft recovery and prevention accessories.
• Be sure to keep updated files for each commercial vehicle you own and operate. These files should include initial cost, fuel costs and mileage, as well as a complete list of inventory carried in the vehicle.