We all know that in order to drive, we need auto insurance. You don’t want to be caught driving without one as it will mean a huge fine, and if you get any unluckier, your vehicle gets towed! Talk about adding insult to injury. Although the purpose is the same – to drive and get to places, the kind of car insurance policy matters for every individual – especially for the self-employed and businesses.
Commercial Auto Insurance is required for self-employed individuals using their vehicle for work- except for commuting to work. When you run your own business and you have a vehicle used to transport materials, equipment or nonetheless a client, you are required to have Commercial Auto Insurance. It is important to know the difference between the Personal Auto Insurance and Commercial Auto Insurance. The former, is for personal use only like commuting to and from work, grocery shopping or leisure drive with family and friends. Commercial Auto Insurance on the other hand has more coverage like more liability and if you have a big rig truck, we don’t expect you to drive that to the supermarket – so it is often classified as a Commercial vehicle.
Although very different in purpose, the coverage is almost the same – except the liability limits are higher for Commercial Auto Insurance. You can choose between $200,000 up to $5 Million depending on how much you require and how much is approved by the insurance company. Also, it has Collision and Comprehensive Coverage with deductibles ranging from $0-$5000. You can always ask your insurance broker or get your Commercial Auto Insurance Quote here.
Most insurance companies classify the vehicle as Commercial Auto if the gross weight of the vehicle is more than 4500kg. Please ask your local broker or insurance company to check if your vehicle is classified as Commercial. Usually, the y will just ask for the VIN and they will be able to do a look up on what kind of insurance you should get.
It is important to get the proper insurance for your vehicle. You never know what is out there and it is so much better to have the right coverage. Whether you are a contractor, consultant, tradesman or self-employed, be sure to have everything covered by having the right insurance. This will help you protect your assets, employees and yourself from any unnecessary head-ache other than growing your business. Make sure that you always review your insurance documents – check your coverage and discuss it with your Insurance Advisor annually. You never know, you may be able to save some money and get a cheaper insurance this year. Right insurance policy, great coverage and lower premium is the key. Always be on top of things – as a boss and as an individual. Check your Commercial Auto Insurance Rates here and find out how much you can save!