A commercial car plays a vital role in running errands, making deliveries, and meeting clients.
Examples of commercial vehicles include cars, trucks, SUVs, and vans. Interestingly, these commercials can double up on personal vehicles during weekends, evenings, or holidays.
Even so, it’s vital to understand how private use affects the logistics and terms of your insurance.
For instance, if a commercial car is involved in an accident, some of your family members may not be covered or compensated.
Remember, commercial car insurance covers employees who are authorized to drive business vehicles.
As such, it’s essential to understand the limits of using a commercial vehicle for private use.
Here’s what you need to know.
Commercial car insurance is similar to car insurance in many aspects. Nonetheless, it covers risks that arise in the line of business.
Commercial car insurance applies to:
Commercial car insurance can cover the following risks.
A point to note: Commercial car insurance covers any vehicle bought exclusively for business purposes. It can also extend to any personal vehicle applied for business use.
Examples of professionals who require commercial car insurance:
Personal car insurance covers you, family members, and someone else driving your car with permission.
The policy covers driving for leisure, commuting to work, or running errands.
Personal car insurance doesn’t extend coverage to commercial reasons like transporting your employees to work.
Although Americans use cars for Uber and Lyft, personal car insurance doesn’t cover the ride-sharing business.
Luckily, personal car owners interested in conducting business can request an add-on to cover the additional risk.
By principle, commercial vehicles cover employees authorized to drive the business car. In addition, it covers the cost of medical treatment or repairs, if an employee uses the vehicle for private use.
Commercial insurance is also valid if the employee drives a vehicle beyond business hours.
In case of an accident, the permitted user enjoys protection against medical costs and
Private use of commercial vehicles is okay. However, it can affect a commercial car insurance claim.
Fortunately, at Panorama Insurance Agency Northridge, CA, we use our vast experience and knowledge to offer sound advice and suitable products. Contact us online or call us at 818-781-6630 to learn more.