Navigating your personal auto policy can be difficult. Whether you’re working with a local car insurance company in Miami or a national corporation, it’s hard to find the right coverage.
What Is Commercial Auto Insurance?
Commercial auto insurance isn’t personal auto insurance with a different name. When you bring money into the equation, the rules change.
Insurance is easy to forget while starting a new business. Odds are, if you use your car to make money, you should consider commercial auto insurance.
What Does It Cover?
On the surface, commercial auto insurance provides the same protections as your personal auto policy, which applies to most cars on the road.
Personal auto insurance protects you from financial responsibility if you’re found liable for an auto accident in which you injured another person or damaged their property. You can also customize your coverage to reimburse you in the event of theft, pay for some of your injuries if an uninsured motorist strikes you, or cover expenses if you cause an accident yourself.
When Would I Need Commercial Auto Insurance?
Since the laws are changing, we recommend reaching out to a Miami insurance broker to review and learn about your coverage.
This insurance sounds like a one-size-fits-all solution, but basic insurance is all about the exposure that regular, personal use of a vehicle brings.
Your Employees Drive Your Car
A personal auto policy covers you and your household.
Employees don’t live with you, so they don’t fall under a personal auto policy. However, they might need to use your vehicle. If you provide a car for supply runs or deliveries, it’s important to cover those drivers.
If you have personal insurance and an employee crashes, your insurance might deny the claim or cancel your policy afterward.
Specialized Coverages and Vehicles
Most personal auto policies cover typical vehicles that people drive in their day-to-day lives. If you own a bus, a large truck like a U-Haul, a tow truck, or another specialized vehicle, you may need commercial insurance.
These larger vehicles cause more damage if they collide with another driver (15,000 pounds is a common cutoff weight), have rugged designs to withstand tough conditions, and cost more than many personal auto contracts are willing to pay.
Small Commercial Use
Even if you drive a more “typical” car, you might need commercial insurance. If you drive for Uber, Lyft, Grubhub, or Doordash, you make money with your car. Depending on your providers’ policy, that may or may not mean a breach of contract.
Insurance is slow to change, and ridesharing and food deliveries exploded in a few short years. Each company adjusts at a different pace.
Talk to a Car Insurance Company in Miami
If you’re not sure what your coverage protects you from, better be safe than sorry and check with a car insurance company in Miami (or anywhere else) to see if you’re covered while you drive.