Many drivers who need commercial auto insurance don't realize it until it's too late. If you're going to see clients every week or running errands for your boss constantly, it may be hard to explain why you were doing something work-related at the time of an accident.
So, if you do need commercial auto insurance for any reason, you may be wondering if it's more expensive. Let’s look at the general cost differences, so you have an idea of what you're jumping into.
Unfortunately, commercial auto insurance is more expensive than personal auto insurance. This is the case because the liability risks are different when a car is out on the road for business purposes. As such, the liability limits need to go up, which puts you at an increased level of coverage.
The idea behind these limit increases is that an injured party is more likely to go after a business than they are an individual. If this happens, you'll be covered for most legal action taken against you — a benefit that can be worth its weight in gold.
The good news is that there are a variety of policies available. This can help you find a policy with coverage and premium costs that are right for you.
Your commercial auto insurance policy is largely dependent on your equipment and how it's used. If you have one car that you drive for Uber one day a month, this is quite different from having three cars and six possible drivers on any given day. The older the equipment is and the more often its used, the more expensive your policy will be.
It may be tempting to evade the truth when it comes to the questions of who, when, and why each vehicle is used. But don’t take chances. Your car insurance company has every right to deny a claim if they feel as though the truth wasn't fully presented at the time of the original policy.
With the rapid growth of ridesharing these days, commercial auto insurance has taken center stage. If you're interested in exploring both traditional commercial auto policies and offshoots, it may be time to contact your insurance agent to get a better idea of the average costs of coverage.
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