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Does Your Small Business Need Commercial Car Insurance?

By December 30, 2020May 12th, 2021Car Insurance Philadelphia

Understanding the difference between commercial and personal auto insurance is essential for small business owners. Commercial auto insurance covers any vehicles that you use for business purposes. The minimum coverage requirements will vary by state, and reaching out to a company that offers car insurance in PA is a great option to learn, which is the best choice for your business.

Here are a few questions to consider to help you determine if your small business needs commercial car insurance.

Do You Transport Goods or Provide Services With Your Personal Vehicle?

Personal auto insurance will cover the commute to your office. However, you will need commercial auto insurance if you ever transport goods or provide additional services to your clients. Commercial auto insurance will give you coverage if you or an employee is in a wreck. Purchasing commercial auto insurance will give you peace of mind, and it will be one less thing to worry about for small business owners.

Are Any Of Your Vehicles Registered to Your Company?

Another important item to consider is if any of your vehicles are registered to your business. You will need commercial auto insurance, whether your vehicle is registered to a partnership, business, or doing business as (DBA) entity. Getting commercial auto insurance offers many benefits, such as coverage for auto liability, medical payments, roadside assistance, rental reimbursement, and much more.

Do You Earn Income by Transporting Property or People?

Commercial auto insurance is a necessity for anyone who earns income by transporting property or people. All of this time on the road creates a much higher risk for accidents compared to other small businesses. Reaching out to a local car insurance company is always a good idea to find the best coverage for your company.

How Often Do You Use Your Vehicle for Business Purposes?

Regularly driving your vehicle for business activities will also require you to purchase commercial auto insurance. Typically, it’s a good idea to buy commercial auto insurance if you use your vehicle at least three times a month for business activities. These business activities can be wide-ranging, whether it’s meeting up with clients, delivering products, or hauling building materials.

We offer auto insurance for many different clients throughout Philadelphia and the local area. We also specialize in many other types of insurance, such as homeowners, motorcycles, RVs, golf carts, and life insurance. Our team members are always happy to answer any of your questions and discuss the best insurance options for your situation.

Give us a call today or send us a message to learn more about receiving car insurance quotes!