Commercial Car Insurance-What It Is and How It Works

1. Commercial Car Insurance: What It Is and How It Works If you run a business that uses vehicles for its operation, you may need to have a commercial car insurance policy. Also, if you use your personal car for business purposes—reasons beyond commuting to work, running errands, or taking road trips— then commercial coverage may be in order. What Is Commercial Car Insurance? While commercial car insurance is similar to personal car insurance in many ways, it's designed specifically for vehicles used by or for a business. This can include vehicles that you buy for a business you own and personal vehicles you use for business. For example, commercial car insurance can cover: Delivery trucks or vans Work vans Dump trucks Forklifts or other construction vehicles Food trucks Service utility trucks Box trucks Company cars        

2. Commercial car insurance can offer both liability coverage and collision coverage for business vehicles and their drivers. The former helps pay for repairs and/or medical costs for the other driver if you're involved in an accident. The latter pays for repairs or medical costs that you incur for yourself or your vehicle if you're involved in an accident. More info car insurance broker One upside of having commercial car insurance for your business is that your premiums are typically tax deductible. You can write them off as a business expense, potentially reducing what you owe in taxes for the year. Personal car insurance premiums generally aren't tax deductible unless you're using the vehicle for business purposes. Even then, you may not be able to write off the full premium amount paid. How Commercial Car Insurance Works Commercial car insurance is designed for scenarios that are specific to a business and its needs. For example, you may need to have non-owned vehicle coverage as part of your policy if you have employees who drive company cars or trucks. If you're self- employed and drive your vehicle exclusively for business, then you'd need a commercial policy that covers it. Again, commercial car insurance can include coverage for both liability and collision damage. Your liability coverage limits may be higher than what you'd typically get with a personal insurance policy. That's a good thing if you're worried about your business being sued because of an accident involving yourself or one of your employees. Aside from liability and collision benefits, commercial car insurance can also include coverage for things such as: Medical payments or personal injury claims resulting from an accident Damage related to theft, vandalism, falling objects, or weather events Damages caused by uninsured or underinsured drivers Trailers that are used in conjunction with business vehicles Rental vehicle costs if you need to rent a temporary replacement vehicle for your business Rental vehicles used to transport employees or clients Employee vehicles that are used for business purposes        https://www.dulibaninsurance.com/auto-insurance/