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Every vehicle that is being driven needs to have an insurance policy. That usually means getting a personal policy. They can vary widely depending on the kind of coverage you need. For example, you might opt for full coverage or liability only, depending on the age of your car, the cost of the policy, and how much you drive.

Not only does your every vehicle need to be covered, but every person who drives the vehicle needs to be covered. If the vehicle is used for work, you will likely need a commercial insurance policy.

But, what is commercial auto insurance? Whether one person is driving the vehicle or you have a whole fleet of vehicles that will be driven by employees, you’ll want to use the information in this article to help you choose the right policy.

Commercial Auto Insurance Explained

A personal policy is one that covers a private vehicle. A commercial auto insurance policy is one that covers a work vehicle that is driven by employees. It covers vehicles that are used when conducting business, even if that vehicle is sometimes used for personal reasons outside of work hours.

The purpose of a commercial vehicle policy is to cover any physical damage and liability in the event there is an accident while you or your employees are at work. If you use your vehicle for work purposes, or if other people drive company vehicles on the clock, you should have a commercial auto policy, regardless of whether you have one vehicle or you have a whole fleet of vehicles.

What a Commercial Auto Policy Includes

Commercial auto insurance policies, just like any other insurance policy, can be customized depending on your needs and the requirements of the state where you live. However, most policies include:

  • Collision loss that includes damage from auto accidents
  • Comprehensive loss that includes damage due to weather events, theft, and other non-collision causes
  • Bodily injury coverage that helps cover medical payments to others who were injured as a result of the accident
  • Property damage coverage includes damage that is caused to someone else’s property due to the accident

Additional coverage options include things like:

  • Rental reimbursement, should you need to drive a rental vehicle after the accident
  • Uninsured or underinsured motorist coverage that can help pay for damages that are caused by another driver with poor or no insurance
  • Personal injury protection can pay medical expenses and income loss to the driver and passengers, regardless of fault
  • Medical payments coverage can pay medical or funeral expenses, regardless of fault

Who Needs Commercial Auto Insurance?

First, consider the vehicle itself when determining whether or not you need a commercial policy. If the vehicle is used for business, if it has a commercial license plate or tag, or if it is registered as a commercial vehicle, it should be covered by a commercial policy.

Next, consider what the vehicle is being used for. If it is being used to transport clients, to go to off-site meetings, deliver items, or if it’s used to shop for office supplies, it should have a commercial policy.

Finally, consider the people driving the vehicle. If they are employed by your company and will be driving the vehicle while they are on the clock, they should be added to the policy as an approved driver.

Whether you have lingering questions about what commercial auto insurance is or you still aren’t quite sure if you need a policy at all, contact a qualified insurance broker. A representative who works with multiple carriers can help you determine if you need a policy, and if so, exactly what it should include so you can rest easy knowing you’re covered.

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