Do I need a Commercial or Personal Vehicle Policy?

If you use your car for business purposes, you need the right insurance coverage to protect yourself , your passengers and your property.   Personal insurance policies may not cover you in case of an accident if you are using your vehicle for business purposes.  An insurance agent is the best advisor for your individual circumstances, but the the following are some variables to give you some guidance on what coverage to acquire.

Who is the the owner of the vehicle: If registered under a business name, commercial insurance coverage is needed, but this does not mean that if the vehicle is registered to  an individual a personal insurance policy coverage will give the correct coverage.  It depends on the useage and type of vehicle.

Who drives the car:  If employees of a business are driving the vehicle, a commercial policy is needed and they need to be listed as drivers on the policy.

Use of the car:  This is an important variable. If you need to go to two or more job sites everyday, you work in farming, you transport  and deliver business goods (for example pizza, flowers, wholesale and retail, etc), or if you use your vehicle for work purposes on average more than three times in a month, you will need a commercial policy.  Commuting to your office from home is not a business use and  is covered under a personal insurance policy. Going from your office in your vehicle to visit clients on a regular basis might qualify you for a commercial policy. Also, if you transport people as a business,  equipment and tools, or if you tow cars as a business, you are required to have commercial coverage.

Policy Add-Ons:  If a third party is requesting you to have endorsements to your policy such as additional insured, waiver of subrogations, liability coverage for hired, non-owned vehicles or mobile equipment, a commercial policy is likely to be needed. Also you may need cargo or on hook coverage depending on the use of the vehicle.

Type of car:  Vehicle like pickups one ton or over, tow, dump, semi trucks, and commercial trailes always require  commercial coverage.  If hauling for hire, GA Dot or Federal Motor Carrier filings may be needed.