-Commercial auto insurance covers more than delivery vans and tool trucks and it’s important to make sure that vehicles used for business purposes are properly insured. Small business owners, especially, may be tempted to save some money by using their personal vehicle for business and not telling the insurance company, but the risk can quickly outdistance any savings reports Rick Torres, State Farm Insurance Agent.
Even though both personal vehicle and commercial vehicle insurance covers accidents, personal injury and property damage there are some significant differences:
- Commercial vehicle insurance covers vehicles that are used exclusively for business such as delivering merchandise, driving to client sites, performing certain transportation services for a fee and other uses that are related to the business. Commercial vehicle insurance also covers licensed employees who have permission to drive company vehicles.
- Personal vehicle insurance only provides coverage for accidents while driving for personal use, including commuting to and from work. Because of the increased risk of business use, most personal vehicle policies exclude business use and if there is an accident while driving for a business-related matter, the claim is most likely rejected.
The Solvang car insurance agent reminds business owners that the nature of business driving, which can include carrying passengers, a wide variety of merchandise, valuable tools and supplies, and more increases the risk of loss. It’s reasonable to expect commercial business insurance to be a little more expensive than personal vehicle insurance, but the cost may not be as expensive as expected.
- Liability covers injury or property damage and personal injury and medical payment coverage helps pay for injury and funeral expenses
- Comprehensive coverage helps repair or replace a covered vehicle that is damaged or lost due to something other than a traffic accident
- Collision coverage helps pay for a damaged vehicle
- Uninsured and underinsured motorist coverage helps pay for medical bills and property damage when the other driver isn’t insured or is underinsured
Even though commercial vehicle insurance sounds a lot like personal vehicle insurance, there are a number of differences. Commercial vehicles are usually on the road for many more miles per year than a personal vehicle, raising the risk of a traffic accident. Commercial vehicles might carry paying passengers who might be injured in an accident. Commercial vehicles drive in and out of a variety of parking lots, delivery bays, and often park in delivery zones on streets, raising the chances of dents, scrapes and other damage.
The investment in commercial vehicles is an investment in the business and it’s important to protect all business assets. Even a small fender-bender can have an impact. The damaged vehicle needs to be out of service for repairs, there may be an expense to rent another vehicle for critical business deliveries or appointments, or the vehicle may need to be replaced.
Commercial auto coverage covers a wide range of vehicles: cars, trucks, vans, farm vehicles and more. State Farm offers a wide range of commercial vehicle coverage options. One of the best business decisions is to make an appointment with a car insurance agent at Solvang’s Rick Torres State Farm Insurance agency and discuss all of the business’s insurance needs, including vehicle coverage.
Rick Torres has been meeting the insurance needs of businesses, individuals and families in California’s Central Coast since 2002. Born and raised on the Central Coast, Torres graduated from Cal Poly San Luis Obispo with a degree in Business Administration and has served on the Solvang and Buellton Chamber of Commerce, coached youth athletics, and supports a variety of community causes.
Torres and his team are always ready to discuss all insurance needs and deliver the best insurance solutions possible.
Rick Torres Insurance Agent
540 Alisal Road, Suite 4
Solvang, CA 93463