Car insurance companies generally view business drivers as riskier to insure than personal drivers. Therefore, most personal car insurance policies prohibit using a vehicle for business-related purposes. If you are required to drive a car on the job, it’s recommended that you purchase commercial auto insurance. This blog will help you understand why your personal car insurance excludes commercial coverage.
- Why Are Commercial Drivers Considered High Risk?
Insurance companies consider commercial drivers as high risk because they use their cars more frequently than other drivers. The more you drive your vehicle, the more likely you’ll be involved in an accident. If you are driving a commercial vehicle, consider commercial auto insurance. If you are using your personal vehicle to complete business-related tasks, consider purchasing hired and non-owned auto insurance. That’s because your personal car insurance typically doesn’t cover you if you are using your car for business/ commercial purposes and have an accident while doing so. In this situation, you’ll have to pay out of pocket to cover any expenses incurred due to the accident.
- Differences Between Commercial/Hired Car Insurance
If you only use your personal vehicles to complete business-related tasks on an occasional basis, it’s recommended that you speak with your insurer. They can help you customize your policy to fit your needs. If you drive on the job regularly, adding commercial auto insurance is your best option. Commercial auto insurance covers your business if you are involved in an accident on the job. While adding liability insurance is a legal mandate, you can add comprehensive coverage to protect you if your vehicle is stolen or vandalized on the job.
Hired and non-owned insurance covers you if you use your car to complete work-related tasks or if you rent cars regularly while working. The policy covers you while performing delivery services, picking up people, and transporting supplies. In most cases, hired and non-hired coverage acts as supplemental coverage to your personal auto policy.
Consult with Steve Wilk Insurance Agency Inc.
It’s recommended that employers educate their employees on the benefits of practicing safe driving habits. Practicing safe driving habits can help lower your insurance premiums. If you have questions regarding personal and commercial auto insurance, contact our team at Steve Wilk Insurance Agency, and we will assist you.