For most contractors, their work truck is not simply a vehicle to get to the work sites but it for the most part their office and their shop as well. Without it, it is impossible for most to run a business and those who have been in a motor vehicle accident in their work truck know how destabilizing this could be for them and their business.
This is why making sure your get the right coverage is crucial when you use your vehicle for your business. Here is an explanation of the coverage you should consider on a commercial vehicle policy:
- Liability: Commercial liability coverage is required in most states and is designed to help pay for bodily injury and property damage expenses that you have caused to third parties in an accident in which you are at fault. Also liability coverage helps to cover legal fees and judgments, should the third party decide to sue for ‘pain and suffering,’ commercial liability auto insurance helps keep your assets where they can help business move forward, in your bank account.
- Collision: If you were at fault in an accident and your liability coverage has taken care of the costs of repairs and injuries for the other driver. What about your work truck? Without collision coverage, you could be responsible for paying to replace your vehicle. Collision auto insurance will pay to repair your car up to its cash value. However, if the cost for repairs exceed the value of your vehicle, most insurance companies will ‘total’ it and give you the money towards the purchase of a new vehicle.
Since collision is usually the most expensive form of auto coverage, you can opt to have a higher deductible to lower your premium payments but make sure the deductible is affordable to you in case of an accident as this would be the amount you would have to pay out of pocket.
- Uninsured/ Underinsured Motorist: There are many scneariors where an accident could involve an uninsured driver who is at fault or an unknown driver (hit and run). You could also be parked while at the hardware store or outside a job site and someone could hit your parked vehicle and abandon the scene without leaving a note. With uninsured/ underinsured motorists coverage, you medical bills as well as the damage to your vehicle would be covered.
- Medical Payment (Personal Injury Protection): This coverage is designed to pay for medical expenses of both you and your passenger(s) in case of an at fault accident. However, if someone else is liable for the accident your insurance company will likely seek to recoup expenses from them.
- Comprehensive: Comprehensive auto coverage is meant to cover non-collision damage to your work truck or other commercial vehicles. Comprehensive also typically covers damage from things that are outside of everyone’s control such as fire, theft, vandalism, flooding, earthquake, natural disaster, or even hitting a deer.
Most personal auto insurance policies do not cover accidents that occur when a vehicle is being used for work purposes. This is why it is important to make sure you get a commercial policy for the vehicle you use on the job.
You need commercial auto coverage for your vehicle if:
- You use your personal vehicle for work purposes
- Your employees use your vehicle for work purposes
- Your employees use their own vehicle for work purposes
- Your business leases, rents, or owns vehicles.
Whether you or one of your employees are in an accident while driving for work, a personal auto insurance policy will not cover damages or injury. Protect your business assets, your vehicles, and the drivers and passengers inside them with coverage designed to insure autos that are being used for work purposes.