Do you use your personal vehicle to deliver papers, pizzas, sandwiches, flowers or other deliverables in exchange for money? Do you, from time to time, help your son or daughter with delivering their newspaper route? If you answered yes to this question, you may need a commercial auto insurance policy for your vehicle.
We all use our vehicles to get us from point A to point B; usually on personal errands, road trips or commuting to work. If you happen to use your vehicle for business use, like a paper route or pizza delivery or sandwich delivery, your personal auto insurance policy may not protect you in an accident.
If your business provides a vehicle for you, most likely that vehicle is covered under their policy, but be sure to ask your fleet department about what and how much is covered. If it is required that you use your personal vehicle, your personal auto insurance policy may not be sufficient. Your personal auto insurance policy only covers your vehicle for personal use. If you use your vehicle to deliver goods in exchange for money, a commercial auto insurance policy in California may be necessary.
Commercial auto insurance in California:
- Who needs it: Any vehicle that is used for commercial or business purposes may be required to have a business use policy. If your vehicle is used for both personal and commercial purposes, you may be able to get away with a business use endorsement on a personal vehicle policy. Talk to your agent about this option.
- Why do you need another policy: You can get higher limits from your policy, giving yourself and the business extra protection from accidents.
- What is covered: A commercial auto insurance policy covers many of the same claims that arise as a personal auto insurance policy, however limits and coverage options may vary between carriers.
- But who is really going to know? You’d be surprised. Insurance companies are keen on claims and while their job is to pay claims, they could deny your claim if they find out you were driving it while using it for business. Play it safe and talk to an agent about your options.
So whether you are a traveling sales rep or out delivering packages, flowers, papers, or sandwiches talk your agent about your personal and commercial auto insurance needs. Their years of experience can save you bundle.
If you have questions about your home or renters insurance, call the insurance agents at Mills Insurance Services. They have offices in Los Alamitos and Palm Desert. Their years of insurance experience can help you insure everything from your home to your auto or motorcycle. They live where you do and are an independent insurance agent, so they can help you find the right company to fit your needs. You can also check out their website, 24/7.