For many self-employed people here in Georgia?it’s not easy to determine whether personal or commercial auto insurance is needed. The decision?is especially difficult when the vehicle is used for both personal and commercial use. Although every situation is different and we strongly recommend getting help from a licensed insurance agent, there are four questions you can ask that will help determine the right policy for your needs.
1) Who Owns and Drives the Vehicle?
If the vehicle is owned by and registered in the name?the business?you’re probably going to need a commercial insurance policy. This is?not always be the case but?most of the time it is.?If the vehicle is owned by and registered to an individual it’s going to depend on how the vehicle is used.
2) How is the Vehicle Used?
If the vehicle is owned by an individual and used only for commuting to and from work or to go to one or two job sites a day, you can probably purchase personal auto insurance.?If the vehicle is used regularly for business purposes, including several job locations per day it will most likely need a commercial policy.
3) What Type of Vehicle Is It?
If we’re talking about a vehicle that is larger or heavier than a typical pickup truck or SUV it will probably?need a commercial insurance policy if for no other reason than?most personal auto companies won’t insure it.
4) How Much Liability Coverage is Needed?
If you need higher liability limits than you can purchase through a personal auto policy you may need to purchase a commercial policy. Commercial policies often offer combined liability limits that are much larger than you can purchase with a personal auto policy.
Because personal auto insurance may not cover you for?commercial usage?and a commercial policy may not protect certain personal use making the right decision about a personal or commercial auto insurance policy can be extremely important to your financial future. Although these questions are meant to give you a better understanding of the right choice for you, there’s no replacement for discussing your specific situation with a licensed insurance professional. Click here to find an agent near you or give us a call at 1-855-Go-Velox.
By the way, many people assume that commercial auto insurance will be more expensive than personal auto insurance and that’s not always the case. Get a quote for commercial insurance today and see for yourself.