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Commercial Auto Insurance for Your Truck

Now more than ever, the era of the small businessperson is upon us. For reasons ranging from a desire for independence to the harsh realities of job loss, many Americans have taken an entrepreneurial on their path to financial freedom. Many truck owners beginning to work for themselves are making this transition by the seat of their pants, not really sure what they are getting into or the things that are required of them by law. Thousands of truck owners are not really sure about their auto insurance status, wondering whether they ought to have commercial insurance, and equally curious about whether they could even afford it. The fears about the cost of such a policy tend to outweigh any acknowledgment of its great advantages over personal auto coverage. If you are curious about commercial truck insurance and you are wondering whether it is right for you, do the proper research and get some quotes together. You may find that the cost is much less prohibitive than you had imagined, and that the benefits of commercial auto insurance far outweigh the costs.

When to Get Commercial Insurance

The first question which many of us outside the insurance industry tend to ask is when to get commercial insurance in the first place. If you own your truck and it is titled in your name and not in a business name, surely this thought has crossed your mind at least a time or two. And there is something to be said for that: the ownership of a vehicle and its titled status is certainly a factor in determining whether or not it needs commercial coverage. But this is far from the only factor.

Of much more importance than the name on the title, quite honestly, is the use of the truck. That is, the ways you utilize your truck during the day are much more influential than the title ownership in determining whether you should go ahead and spring for a commercial policy. If you drive by yourself in the truck and all you do is drive to and from work in it, and you do not actually use it for work in any way, chances are you do not need a commercial truck policy.

Many truck owners all over the country fall into this category. Maybe they use their trucks for camping or for picking up materials for home repairs, or helping friends to move and things of that nature, but they do not use the trucks during the work day. For these truck owners, simple personal auto insurance in most cases will be sufficient to insure their trucks.

But for many others, there is some work-related reason they own a truck. Maybe they are carpenters or carpet layers or members of some other trade who transport tools, materials and even fellow workers to a job site. Maybe they drive in to a shop in the morning, then load up their trucks and head out selling or installing their companies' products or services. Even at this level of work use, it is very likely you need a commercial auto insurance policy for your truck. You may not realize it, but your provider can deny your claim on a personal car insurance policy if they determine that your truck was being used for a work-related purpose at the time of the accident or claim event. At any rate, workers who occasionally use their trucks at work should make sure their companies have non owned vehicle coverage, so that if anything happens they can file a claim with their employer's commercial policy.

For other truck owners who more clearly use their trucks for work day in and day out, the need for commercial truck insurance is much more certain. Even if you just own a pick-up truck, you still need commercial coverage in this scenario. Again, the use of the vehicle is what is important, not the size in this case.

Advantages of a Commercial Policy

At any rate, most truck owners who decide to look into a commercial auto policy for their trucks will quickly see the advantages to carrying this kind of plan versus a personal auto policy. One of the immediately obvious advantages is the much higher liability limits available. If you are carrying hazardous materials or expensive equipment, or you are working at people's houses or transporting co-workers on a daily basis, you need liability protection to shield you from risk. A personal policy will not do as good of a job of protecting you as will a commercial truck policy.

And commercial truck policies do not necessarily cost all that much more. If you have a policy with specific provisions for coverage only during business hours, for example, your insurer is only carrying a risk for a limited window of time, as opposed to a 24/7 kind of risk with a personal auto insurance policy. The cost difference for a small or mid-sized pick-up truck especially tends to be negligible. And this kind of coverage can save you from endless hassle if a claim comes up. Just knowing you are covered and not having to wonder all the time is certainly worth a little extra investment. Besides, designating a truck for business use opens up additional tax advantages lacking in personal use vehicles.

Many truck owners spend a lot of time agonizing over whether they should really have a commercial truck policy rather than a personal plan, when they could easily solve the problem and get to the bottom of it by simply asking. Your insurance provider has specific guidelines broken down in terms of type of use and state requirements, so the answer is well within reach if you simply ask for help. In some cases, you might find that you do not technically need commercial insurance for your particular use; but you still may find it worth investing in just for the superior coverage and the unquestioned protection you would have in the case of a claim related to work use.

Save Money on Online Premiums

If you come to the conclusion that you do, in fact, need commercial auto insurance for your truck, do not resign yourself to paying outrageous premiums for your coverage. Understand that there are ways to save money, just as there are for any other type of insurance policy. If you are a safe driver with a good driving record and a strong credit score, chances are you can get into a commercial policy for a relatively low price. Do not let yourself get scared off from doing what you know is probably the right thing in your case out of fear of having to spend a bit more. Think of it this way: if you really need commercial truck insurance, then your personal auto policy is really doing you no good anyway, and you are paying for nothing, no protection at all.

Commercial auto insurance for your truck provides the kind of coverage you cannot get from a personal auto policy. It goes to work for you in a wide variety of situations involving on-the-job claims, and it repays your investment with excellent protection.

 

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