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- Written by: Shelly Campbell
- Category: Commercial Auto
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Commercial insurers offer policies for business-use only, business and personal, or personal-use only vehicles on a Commercial Auto policy. Mixing the use of the cars sometimes makes sense, and sometimes it doesn’t.
Take a contractor with a newer truck and full coverage, for example. If the contractor uses the vehicle for their contracting business but insures it on a personal policy, all drivers in the household will be partially rated, even though they don’t drive it. So, let’s assume a young driver lives in the house, and the contractor swears the teenager will never get behind the wheel of his new truck. The company can’t exclude the youthful operator and must add him, increasing the insurance cost.
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Putting that truck on a Commercial Auto insurance policy lets the contractor insulate themselves from the added cost of an inexperienced driver. But remember, that young operator cannot drive that pickup… ever! If they do, the company may not cover the accident.
Another example is a sales representative. Suppose they make no deliveries but visit different locations during the day. In that case, a Commercial Auto insurance policy might be less expensive. Their Personal Auto insurance policy might deny coverage based on business use of the vehicle, especially if they have commercial signage on the car.
If you have a Commercial Auto insurance policy, add your private-use vehicle to it for the multi-car discount. Identify it as personal use only and list all drivers on your policy. A Commercial Auto policy does not require all household members like a Personal Auto policy. However, they insist that you include all regular and occasional drivers. Be sure to name your spouse or other household members who drive the vehicles listed on your Commercial Auto policy.
Most people think that Commercial Auto insurance policies are more expensive than Personal Auto insurance, but that isn’t always true. If you are self-employed, talk to your agent or call us at 503-489-3143 to discuss your options.