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Top 7 Reasons to Buy Commercial Vehicle Insurance

Smiling truck driver standing in front of a semi truck and portraying reasons to buy commercial vehicle insurance.

Whether you run a business that has a garage full of semi-trucks or you operate a business out of your home, it is important for all businesses to have a commercial vehicle or commercial truck insurance. Many freelancers or small business owners wonder what commercial vehicle insurance is and mistakenly believe that it is a code word for “semi truck insurance,” but that’s not the case. Certainly semi-trucks should have a commercial truck policy, but every business owner that uses their car, pick-up truck, or van for their business should get a commercial vehicle insurance quote.

There are many reasons why you should invest in a commercial auto insurance policy if you or an employee uses a vehicle owned by you or your company to conduct business.

1. A Personal Auto Policy Won’t Provide Proper Coverage

The bottom line is that the typical personal auto insurance policies that car insurance companies offer to individuals don’t provide enough coverage and have liability limits that are too inadequate for business use. The coverage simply isn’t broad enough to protect you and your business. In fact, many car insurance companies will void a personal auto policy if it is discovered that the vehicle under the policy is used primarily for business purposes.

2. Commercial Auto Insurance is Comprehensive and Customizable

Unlike a personal auto policy, commercial van/car/truck insurance provides more coverage in a variety of ways. Most commercial car insurance plans offer coverage for property damage, liability, medical payments, and even cargo coverage all through the same policy. Those are the usual basics, but you often can get a customized commercial vehicle insurance quote that contains additional protections that aren’t usually offered in many personal car insurance plans.

3. Your Employees Will Be Covered

Traditional personal auto insurance plans won’t cover your employees if you have them drive your business vehicle. However, not only would a commercial auto insurance policy cover your employees when they drive your vehicle, there are some bonus protections as well. Many commercial vehicle insurance policies can protect your employee if she or he uses their personal vehicle for a work-related trip. These same policies will usually offer coverage for rental cars or trucks being used for business purposes, too.

4. Commercial Car Insurance Can Be a Business Deduction

Not only would commercial truck insurance, commercial van insurance, or commercial auto insurance be a good investment to protect your business, it could actually pay for itself. Commercial car insurance can be included as a business expense, therefore it can be tax deductible. Not only do you have quality coverage, you have a potential tax write off, too.

5. It Could Help Offset Costs of a Lawsuit

If you or your employee gets into an accident that causes damage to a person or property, the victim can go after your business legally. Compared to a personal auto policy, commercial auto insurance typically has double the liability limit and can help offset costs if your case is taken to court. This way the insurance policy will cover the lion’s share of the lawsuit rather than needing to use company money to pay for the damages and court fees.

6. Your Business Needs High Limits

Be honest. A box truck will do significantly more damage in an accident compared to the standard automobile. With that in mind, a commercial truck like that along with many other similar vehicles need higher liability limits and other coverage in order to offset those costs. Traditional car insurance likely won’t have a high enough limit to pay for all the damages caused by a commercial vehicle in an accident.

7. The Law Might Require It

Depending on the state you reside in, you might be legally required to purchase commercial auto insurance for your business vehicle. Even if you live in a state the doesn’t require a business to have commercial car insurance, you may still be required to have a commercial policy if you drive your business vehicle across state borders. You could do the research to make sure that all the states you do business in don’t require a commercial car insurance plan, but it is more worthwhile and less of a hassle to get good coverage from any of the many car insurance companies out there.

Now that you know why your business vehicle needs a commercial vehicle insurance policy, request a free commercial vehicle insurance quote from Freeway Insurance by calling (800) 777-5620. Within minutes, you’ll receive a quote that will put you at ease and protect your business interests.

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