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Pam's Insurance Site

When I bought my first house, I was already going into a lot of debt. I didn't have the money to seriously insure it, so I bought only the bare minimum without consulting an insurance professional. That was a big mistake on my part. It could have turned out alright. That is, if my house hadn't been in the path of a huge storm. Huge gale winds knocked a tree down straight through my roof. My house was practically destroyed, and my minimal policy didn't cover nearly enough. I spent years and years trying to get myself out of that financial mess. Since then, I have always been very cautious in learning about insurance and talking to the real professionals.

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4 Facts To Know About Commercial Auto Insurance For Your Business

If you use a vehicle for your small business or manage a large company that has a full fleet of vehicles, you should have commercial auto insurance coverage to protect you from certain liabilities. Commercial auto insurance is different from a personal insurance plan, and a business auto insurance policy can provide you with specific coverage that your business should have. To make the process of buying a commercial auto insurance plan easier, you can review these important facts. 

1. Personal coverage excludes using a vehicle for business

One of the first questions that an insurance claims specialist will ask if a vehicle of yours gets into an accident is whether you were using the vehicle for work-related purposes. If you only have personal auto insurance coverage and were using the vehicle to conduct business, your claim will almost certainly be denied. You won't be able to receive any insurance money to cover your losses if you were using your vehicle for work while only having a personal insurance plan, and you might have to file a lawsuit if another driver was at fault for the accident to try to get any compensation.

2. Different commercial auto insurance coverage plans are available

In addition to liability coverage, there are other types of business auto insurance plans that can help protect you financially. A non-owned insurance plan may be suitable if you have an employee who uses their personal vehicle for work purposes from time to time. If your business involves transporting heavy or awkward objects that could damage someone else's property when these items are being loaded on or unloaded from a vehicle, you should get a loading and unloading liability plan. If any business vehicles are out of commission for repair work, substitution transportation insurance is available to cover any vehicles that you use temporarily as replacements.

3. Coverage minimums must be met

The minimum amount of auto insurance coverage that you will need for your business will depend on where your business operates. You should learn the state and federal minimum insurance requirements so that you can satisfy at least the minimum coverage amounts that you need. The vehicle weight and type that a company uses and whether or not passengers are transported can affect the minimum requirement. Liability insurance must also cover a minimum dollar amount.

4. Commercial auto insurance can usually be claimed as a tax deduction

Commercial insurance coverage can even be good for your company's budget if you claim your policy on your business taxes as a deduction. All expenses related to your policy must be ordinary and necessary to qualify for a tax deduction. You may also be allowed to deduct fuel, vehicle repairs, and registration fees along with your business auto insurance cost.

Now that you know more about commercial auto insurance, you'll be a better-informed shopper when you select from the different policies that are available. A commercial auto insurance agent can answer any other questions you have and enroll you in a plan that gives you the right amount of coverage for your business.