The insurance world can be filled with sticky situations. While you can research every scenario under the sun, sometimes it’s smart to simply speak with an insurance agent. In the case of insuring a commercial vehicle for personal use, you may be better off consulting a licensed agent to get the exact info you’re looking for.

 

We’ll break things down for you here, but it’s important to remember that every insurer and policy will handle things differently.

 

Do You Need Commercial Insurance for Your Personal Vehicle?

 

Let’s start with an example. Let’s say you own some land in the country. You’re retired and looking to do some work on your property. So, you buy a dump truck to help you move things around efficiently on your land.

 

While a dump truck is certainly a commercial vehicle, you won’t be making any money with it. The vehicle is strictly for personal use. So, do you need a commercial vehicle insurance policy or not?

 

Here’s how an insurance company will break it down for you:

 

• Owners and Drivers: First and foremost, the insurance company will want to know who owns the vehicle and who is going to be driving it. If you, the individual, are the only person who will be driving it, then there is a chance you can buy a personal auto insurance policy for the vehicle and not have any issues.

 

• Vehicle Use: This one is fairly obvious. If you plan to use the vehicle for any type of business-related activities, then a commercial policy will be required. However, if you drive the vehicle to and from locations without hauling things, then a personal policy may cover you. Again, it just depends. People who drive for Uber or Lyft, run into this scenario quite often. Some insurance carriers now have what they call a “Ride Sharing” endorsement now. This endorsement helps bring a little clarity to these sometimes, sticky situations.

 

• Higher Liability Limits: Certain commercial vehicles are required by law to carry higher liability limits. This means that the auto is so large that liability thresholds must be higher to cover potential damages. In this scenario, a commercial insurance policy will be needed – as commercial coverage always has higher limits than personal auto insurance.

 

• Type of Vehicle: Certain vehicles cannot be covered under a personal car insurance policy. Often, these vehicles simply weigh too much. They’re just too large. As such, you’ll need a commercial policy for these. Most insurers will require a commercial policy for any vehicle that is heavier than an average large SUV.

 

How to Decide If You Need Commercial or Not

 

If you own a commercial vehicle, then figuring out how to insure it at a reasonable cost is important. A great way to find the right insurance policy at a low price is through research. Start with your current insurer. (or call us 🙂

 

Get in touch with your agent and honestly discuss the issue with them. You may find you can keep the vehicle on your personal auto insurance policy with zero issues. This is fairly common, especially for people working on their own land.

 

On the other hand, you may be informed that your vehicle is required to carry commercial insurance by this particular insurer. In these instances, find out the costs involved, but don’t agree to anything.

 

Next, seek out other car and commercial vehicle insurance companies and see if other insurers will require commercial coverage or not. As most insurers handle commercial vehicle insurance for personal use differently, there’s a chance you’ll find one insurer who will offer full personal vehicle coverage on your commercial auto.

 

Insuring a Commercial Vehicle for Personal Use

 

If you have to get commercial vehicle coverage for a truck or auto you use personally, don’t get upset. Insurance companies always focus on risk. If you’re just using the vehicle for your land or personal purposes, the coverage shouldn’t be too much more expensive than your personal policy.

 

The smart thing to do? Get in touch with a friendly, non-pushy, experienced insurance agent and find out as soon as possible. You can find a team of them at Protective Agency. Call (877-739-9367).