Everyone who drives a car knows the necessity and legal requirement that is car insurance. But you will need specific insurance quotes for cars that you use mainly (or solely) for your business. It may also be a good idea to check out accident insurance quotes to protect your business and, of course, your employee, a your personal car insurance won’t cover them.
Here are several key facts that you need to be aware of if you’re trying to get commercial vehicle insurance.
Insurance Coverage
There are several types of coverage for commercial vehicles, with various limits and deductibles. Usually, the coverage will include:
- Personal injury liability for your own injuries, the injuries of your company drivers, and for passengers, and this can include both medical expenses and lost wages
- Liability for bodily injuries for others
- Property damage liability
- Collision coverage, no matter who was at fault
- Comprehensive coverage for damage that may not involve a collision
- Coverage for underinsured and uninsured motorists
- Coverage for borrowed or rented vehicles
- Coverage for loaners during the repair of the damaged commercial vehicle
- Towing and labor expenses
How Much Does Commercial Insurance Cost?
Commercial insurance protects you from having to pay out exorbitant amounts of money for medical expenses and vehicle repairs. These expenses can get especially large, and small businesses could fold up without proper coverage. At least with monthly premiums, the expenses are far more manageable.
Commercial insurance costs vary depending on many factors. It will cost you more in premiums if you have fewer vehicles and you minimize the coverage. Heavy-duty vehicles that transport heavy loads will cost more. Your premiums may also go up if you have young drivers in their 20s and they have bad driving records.
Vehicles that Need Commercial Insurance Coverage
Just because you’re using a car to drive to work doesn’t make it a commercial vehicle. Basically, if your vehicle is classified as a commercial vehicle, has a commercial license plate, or is used for business purposes, then you need commercial vehicle insurance.
These vehicles may be used for:
- Delivering goods, including pizza and newspapers
- Transporting goods, including business equipment and hazardous materials
- Towing cars
- Use as a chauffeur or taxi service
Personal Use
It’s true that commercial vehicles may often be used for personal purposes, and that’s often covered in the details of your insurance policy. Usually, the policy clear states the kind of circumstances that are covered by the commercial insurance, and other types of situations are covered by your personal auto insurance.
There are plenty of clauses for these situations, so you need to have a very clear idea of what types of accidents are covered when you and other family members use your business vehicles often.
Tax Deductibility
You may want to talk to your accountant or check with the IRS website for clarity regarding tax deductibles. However, in general if you’re self-employed then you may be able to deduct your premiums. If you’re an employee and you don’t get mileage or expense reimbursement, you may be able to use Form 2106 for Employee Business Expenses.
