Posted by Insurance City on
A lot of small-business owners drive for work on a personal auto policy — until a claim exposes the gap. Here’s when you genuinely need commercial auto.
Signs you need commercial auto
- The vehicle is owned by your business or titled to the company.
- You haul tools, equipment, or goods, or carry passengers for a fee.
- Employees drive the vehicle.
- You need higher liability limits than a personal policy offers, or clients require proof of commercial coverage.
The gap that bites
Personal auto policies generally exclude business use. If you’re in an accident while clearly working — making deliveries, hauling for a job — the claim can be denied, leaving you personally exposed. Commercial auto closes that gap.
What about hauling freight?
If you haul freight for hire, that’s a different animal — you need commercial trucking coverage with the right filings, not standard commercial auto.
Not sure which you need?
Insurance City is a local independent brokerage in Stockton. Tell us how you use your vehicles and we’ll get it right — no broker fees on standard policies. Call (209) 670-1556.