Insuring an automobile may seem like an easy task. That is however, until it comes to choosing a policy type. Most business owners are confused over whether to choose McAllen auto insurance or commercial auto insurance to cover their vehicles. This confusion often causes them to either under insure or over insure their vehicles.
In order to determine if the car needs commercial cover, an insurance company has to determine that the cars being used are for business use. Most insurance companies define commercial use as “engaging in transporting goods for compensation or a fee.” This includes actions such as delivering newspapers, driving a daycare van service or delivering produce.
Some personal auto insurance policies offer adequate cover for commercial use. However, if the type of work being done requires a higher amount of coverage, a commercial policy is usually best. This is because a commercial policy provides a higher amount of liability; although it usually excludes coverage in anything that’s not associated with a commercial auto risk.
Both personal auto insurance and commercial auto insurance cover for medical bills, injuries to others and property damage. However, the related costs are offset if a vehicle with commercial auto insurance cause damage to another car, pedestrian or driver.
Listing Additional Drivers
Commercial and personal auto insurance policies differ in their requirements for how additional drivers should be listed. A personal auto insurance does not require an employer to list the names of the employee drivers; however, a commercial insurance does. If the insured vehicle is corporate or partnership owned, driven by employees, or if the vehicle is being used to deliver equipment weighing over 500 pounds, a commercial auto insurance is needed.
Things to Consider
Before choosing to go with a personal auto insurance or a commercial auto insurance, it’s best to speak to an insurance specialist. Since every business is different and every insurance company has its own inclusions and exclusions, an insurance agent can go over these differences and help you decide the best policy for automobile cover for you. To assist the insurance specialist in making that decision, it is best to gather information such as:
The number of the vehicles that need to be insured
Names of drivers
Type of vehicles
To obtain more information on both personal auto insurance policies and commercial auto insurance policies give Raymond Longoria Insurance a call at (888)-296-0345.