If you own a business that uses vehicles for work, you may wonder: Do I really need commercial auto insurance? The short answer is yes. If you use a vehicle for business purposes, a personal auto policy usually is not enough. Let’s break down what commercial auto insurance is, what it covers, and how to know if it is the right fit for your business.
At MBA Insurance Services, we know how important it is to protect your business investments. That is why we are here to help you understand commercial auto insurance and make the best decision for your company.
What Is Commercial Auto Insurance?
Commercial auto insurance is coverage designed to protect vehicles used for business activities. While a personal auto policy covers your everyday driving, it will not cover vehicles used for tasks like transporting goods, driving to job sites, or carrying tools and equipment.
If your business owns cars, trucks, or vans, or if you or your employees use personal vehicles for work, commercial auto insurance is a smart choice. It helps pay for accidents, property damage, medical expenses, and even lawsuits that could come up while doing business.
What Does Commercial Auto Insurance Cover?
A strong commercial auto insurance policy covers more than just a minor accident. Here are some of the key protections:
- Liability Coverage: Helps pay for bodily injury or property damage if you or your employee causes an accident.
- Physical Damage Coverage: Pays for damage to your business vehicles from collisions, theft, vandalism, or weather events.
- Medical Payments: Helps cover medical expenses for you and your passengers after an accident.
- Uninsured or Underinsured Motorist Coverage: Protects you if another driver has no insurance or not enough coverage.
- Hired and Non-Owned Auto Coverage: Protects vehicles your business rents or your employees’ personal vehicles when used for work.
Having the right commercial auto insurance means you do not have to pay for costly repairs, legal fees, or medical bills out of pocket.
Who Needs Commercial Auto Insurance?
Many small business owners need commercial auto insurance even if they do not think of themselves as needing it. For example:
- Contractors who drive to job sites with tools and supplies
- Landscapers who transport equipment
- Delivery drivers who transport goods
- Real estate agents who drive clients to view properties
- Businesses with company vehicles used by employees
If your vehicle is used for anything more than commuting to a single office, you probably need commercial auto insurance. And if you have employees who use their own cars for work, you may need hired and non-owned coverage to protect your business.
Why Personal Auto Insurance Does Not Cover Business Use
Many business owners believe their personal auto policy will protect them no matter what. Unfortunately, this is not true. Personal auto insurance is meant for personal use, such as running errands or driving to and from work, not for business tasks.
If you get into an accident while using your car for work and you only have personal auto insurance, your claim could be denied. This could leave you paying thousands of dollars out of pocket. A separate commercial auto insurance policy helps you avoid that risk.
How Much Does Commercial Auto Insurance Cost?
The cost of commercial auto insurance depends on several factors:
- The types of vehicles you own
- How many vehicles you have
- Who drives them, and their driving record
- What you use the vehicles for
- How far and where you drive
For example, insuring a delivery truck will usually cost more than insuring a small company car. The good news is that MBA Insurance Services can help you compare your options so you find the best coverage at a fair price.
Tips to Save on Commercial Auto Insurance
You never want to sacrifice protection, but there are ways to keep your commercial auto insurance affordable:
- Hire Safe Drivers: Employees with clean driving records can help lower your rates.
- Bundle Policies: Combine commercial auto insurance with other business coverage to get possible discounts.
- Maintain Vehicles: Keeping vehicles in good shape can help prevent accidents and claims.
- Review Your Policy: Check your policy each year to make sure it still fits your business needs.
How MBA Insurance Services Protects Your Business
When it comes to commercial auto insurance, guessing is not an option. At MBA Insurance Services, we take protecting you, your team, and your vehicles seriously. We help you figure out exactly what type of coverage you need and make sure you understand your options.
Our experienced local agents get to know your business and your risks. Whether you own a single van or a fleet of trucks, we will make sure you feel confident that your business is protected.
When you call us, you talk to a real person who knows your local community. You also have 24/7 access to an agent who can answer your questions or help you file a claim.
Why Choose a Local Agency?
There are many insurance companies out there, but working with a local agency like MBA Insurance Services means you get personal service. We live and work in the same community you do, and we care about helping you protect what you have built.
We have four convenient offices in Red Wing, MN; Lake City, MN; Lutsen, MN; and Ellsworth, WI. We can also help with your personal, life, health, and other business insurance needs. Our goal is to give you the expertise, service, and peace of mind you expect from an agency you trust.
When Should You Get Commercial Auto Insurance?
You should not wait until an accident happens. If you think you need commercial auto insurance, now is the best time to get coverage. Even one accident can cost your business thousands of dollars, so it is better to plan ahead and feel secure.
Common Questions About Commercial Auto Insurance
Do I need commercial auto insurance if my employees use their own cars?
Yes. You may need hired and non-owned auto coverage if your employees drive their own vehicles for work.
Is commercial auto insurance tax deductible?
Often, yes. Insurance premiums for business vehicles can be a business expense, but you should check with your tax advisor for your specific situation.
Does commercial auto insurance cover the tools or goods in my vehicle?
Usually not. You may need separate coverage for the equipment or cargo your business carries. We can help you figure out what you need.
Contact Us Today
Your vehicles help keep your business moving. Do not leave them unprotected. MBA Insurance Services is here to help you find the right commercial auto insurance for your needs. Our trusted local agents are ready to answer your questions and help you protect your drivers, vehicles, and your future. Contact our team today to get started. We proudly serve clients across Red Wing, Lake City, Lutsen, Ellsworth, and surrounding communities.
