Commercial Auto Insurance

A pickup truck is a land conveyance vehicle with a cab to house the driver and usually one passenger. Some have extended cabs with an extra set of seats in the back for up to three more passengers. It will have a box behind the cab. Boxes vary from short (4 feet) to long (6 feet), depending on the model. Many owners and operators of pickup trucks use them to run personal errands to the store or commute to work. However, hauling materials to and debris away from job sites is the intended purpose of most pickups on the road today. They can also haul tools and small equipment without the aid of a trailer. Some are powerful enough to pull a trailer, which can also house materials, debris, tools, and equipment.

This type of vehicle can cause the most confusion when considering insurance. How you use your pickup determines whether to buy a Commercial Auto or Personal Auto policy. Prospective insureds often ask, “Why does it matter? Insurance is insurance.” The range of coverage and definition of vehicles differ between policies. Sometimes commercial is more expensive than personal because of the risk. Risk is defined here as the amount of time the driver spends on the road in a workday and the number of job sites they visit or trips to other destinations.

If the pickup goes to one location every day, it’s classified as personal. Multiple sites would be commercial. If registered in a personal name, personal insurance applies. It must be insured on a commercial policy if in a business name. Bearing company logos or sporting racks and equipment attached indicate the vehicle is used commercially and must go on a business auto policy, regardless of registration.

It can be somewhat confusing for new business owners or someone starting a new venture. Call us. We’ll talk you through the decision process and get the right coverage for your pickup.