Do I Need Commercial Auto Insurance?

Commercial Auto Insurance - Ontario

Honestly, if you’re asking yourself if you need commercial auto insurance, chances are, you do. Personal auto insurance policies have exclusions for using your vehicle for business use and if an accident occurred as a result of your commercial usage, the claim would most likely be denied. Personal auto insurance is not designed for business operations and it could leave you holding a rather large bill and more importantly without a vehicle. Learn today why it’s essential to make sure you are properly insuring your vehicles.

Do I Really Need a Commercial Auto Insurance Package?

If you are using your personal vehicle running company errands such as bank deposits or sales calls visiting clients in their homes, you could get away with adding business use to your personal auto insurance policy. Chances are if you are on the InsureMyTools.ca website, you do a little more than just visiting your clients at their home. You should be aware that if are doing any of the following things, you will need to make sure your vehicle is on a commercial policy.

Some Examples of Commercial Usage:

  • Your vehicle titled in your business’s name.
  • You use your vehicle to transport products, goods or people in exchange for payment.
  • You use your vehicle to transport supplies to a job site.
  • Towing a trailer as part of your work.
  • Your vehicle is outfitted with equipment, such as ladders, snow plows, landscaping machinery, hydraulic lifts or permanent toolboxes.
  • You allow employees to drive your vehicle for business purposes.
  • You have company logos or signage on your vehicle.

Making Sure Your Vehicle is Classed and Rated Properly

For commercial vehicles, it is important to make sure that your vehicle is rated properly. You don’t want to be paying the same rate as the guy who uses his van to deliver goods all day if you are just driving to the work site and back. Every vehicle on your businesses auto insurance should be rated to what the vehicle is used for. Make sure you have a discussion with your insurance professional (hopefully us!) to make sure your vehicle is rated properly. Don’t over pay on your insurance.

Don’t Get Caught Holding The Bill

The idea of keeping your truck or vehicle on your personal auto insurance might be tempting if you think there is a huge price difference between commercial auto and personal auto polices. Depending on your vehicle usage, there may not be a huge difference in premium from your personal policy on your vehicle. Most importantly, if you keep your vehicle on your personal auto policy while using it for your commercial needs, you may be left holding the bill after an accident. Vehicles are expensive to replace, and if someone is injured in the auto accident, lawsuits can be millions of dollars. Don’t chance it, make sure your vehicle is properly rated, classed, and covered under a commercial auto insurance policy.

If you don’t think you’re getting the best rate for your vehicle from your current provider, contact us today to find out if we can save you some money while getting you the proper coverage.