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Written by: Shelly Campbell

Category: Commercial Auto

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A pickup truck is a land conveyance vehicle with a cab to house the driver and a passenger. Some have extended cabs with extra seats in the back for up to three more passengers. Depending on the model, it will have a box behind the cab, varying from short (4 feet) to long (6 feet). 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 from job sites is the intended purpose of most pickups on the road today. They can also carry tools and small equipment without the aid of a trailer. Some are powerful enough to pull a trailer to 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 of being on the road more often. Risk is defined here as the time the driver spends on the street in a workday and the number of job sites they visit or trips to other destinations.

If the pickup goes to one location daily, the company would classify the use of an individually owned vehicle 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 titled in a business name. Bearing company logos or sporting racks and equipment attached indicates the vehicle is commercially used and must go on a business auto policy, regardless of registration.

It can confuse new business owners or someone starting a new venture. Call us at 503-489-3143. We’ll talk you through the decision process and get the right coverage for your pickup.