A lot of small business owners think that they are covered by their personal auto insurance in the event of an automotive claim—but that is not always the case. There are key differences between when a commercial or personal auto insurance policy would provide coverage, and these differences could leave you vulnerable to an expensive loss. Here are four questions you should ask yourself when debating a commercial auto policy.

  • Who owns the vehicle?
    Is the vehicle you’re using registered in your personal name or your business’ name?
  • How is the vehicle used on a daily basis?
    If you regularly use your vehicle to transport business property of any kind such as goods materials, merchandise, equipment or tools, you should consider a commercial auto insurance policy. Also, if you use your vehicle for driver training or to transport customers for any reason (for example, you operate a limousine service), you should speak to your insurance provider about commercial auto insurance.
  • What type of vehicle are you using?
    The make and model of your vehicle can also help determine if you should consider a commercial policy. Bigger, heavier commercial vehicles often cause more damage when involved in an accident, and your coverage should reflect that.
  • Do you have any advertisements on the outside of your vehicle?
    Some personal policies will stop covering vehicles if they have commercial advertisements on the exterior.
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