Do I Need Commercial Auto Insurance?
Do you own your own business? Do you use a vehicle, or vehicles for business purposes? Do you have employees on the road using vehicles for business? Whether you provide company vehicles for your employees, or they use their own vehicle for business purposes, commercial auto insurance is a must. Massachusetts Commercial Auto Insurance provides coverage for cars, trucks and vans used by you or your employees for business purposes.
Massachusetts Commercial Auto Insurance covers many of the same things as a Massachusetts Personal Auto policy including liability, collision, medical costs, uninsured motorists and comprehensive coverage. However, it is specifically for vehicles used for your business. Every company has different guidelines for business use coverage on a personal auto policy. Discuss your situation with your Vargas & Vargas agent to determine your business’ commercial vehicle insurance needs.
Here are some important questions that will determine your coverage needs:
How many vehicles and drivers will need to be covered?
Coverage for commercial vehicle insurance is based on the number of vehicles and drivers to be insured. Depending on the number of vehicles and drivers involved, fleet insurance can often be less expensive than per vehicle policies.
Does your business require special coverages and considerations?
Certain businesses must adhere to federal and state regulatory standards in the operations of their vehicles. For example, if your business will be hauling cargo interstate, there are specific Department of Transportation requirements for insurance that must be met. You will need to make sure you and your insurance professional have a thorough understanding of those requirements. Also, if you will be delivering or hauling for others or using other’s equipment such as leased trailers or rental equipment, you will need hired or non-owned vehicle coverage.
Ways to Lower Premium Costs
Like your Personal Auto Insurance policy, there are certain factors that contribute to determining premiums for a Massachusetts Commercial Auto Insurance policy.
Business Location – the location of the vehicles determines premiums for theft.
Driver Records – hire only qualified drivers with safe driving records.
Choice of Vehicle – sports cars have higher premiums than five-star safety rated mid-sized sedans.
Safety and Anti-Theft Devices – alarms, GPS tracking, air bags, seat belts, and other such devices can significantly lower premiums
Deductibles- can your business afford part of the risk and maintain a high deductible? If so, your premiums will be lower.
Seasonal Businesses – Don’t cancel your insurance each year if you have a seasonal business. If you do, your stored vehicles won’t be protected. It’s better to maintain a comprehensive only policy that will provide basic protection against incidents like vandalism, theft, falling tree branches, and hail during the off-season. Also, if you drop your insurance completely, you might pay significantly more to get a new policy because most insurance companies want to see proof of continuous coverage.
In general, if your vehicle is used more than three times a month for business purposes it is considered a commercial vehicle. This does not include driving the vehicle to and from work, but actually using the vehicle for your business such as visiting clients in your city or making a trip to another city, or driving to a job site or carrying equipment or people for your business. If the use of your vehicle falls under this category, it is well worth the effort of getting the proper type of Massachusetts Auto Insurance so that you will receive the protection you need, when you need it.
Learn more about your Commercial Auto Insurance options and secure a Massachusetts Commerical Auto quote so you can make an informed decision. Vargas & Vargas Insurance is a certified flood insurance agency and is committed to helping you find the right coverage to suit your needs and budget. Call us today at 877-550-0025.
