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Commercial Car Insurance for Self Employed

Commercial car insurance for self employed people is a big mystery to many of us starting our own business and even for some of us who have been self employed for some time. Drivers hear conflicting accounts of whether or not they need a commercial policy, and the resulting confusion can be quite frustrating. If you are a small business owner or are self employed, the last thing you want to do is guess wrong at the question of whether or not you need a commercial policy. Do your homework and find out the definitive answer, so that you do not have to regret it if you ever have a major accident or other claim.

Driving Alone Does Not Matter

Some self employed individuals are true entrepreneurs who sell products and services to other individuals or to businesses. If, in the process of your day, you have to get into your vehicle and drive somewhere in order to perform the work you do, whether it's home remodeling or business to business sales, you probably need commercial insurance. If you have passengers like employees or subcontractors, your need is even greater, because commercial policies provide opportunities for higher limits of coverage. But even when you drive alone, your need for commercial car insurance does not necessarily diminish.

One of the first questions an insurance adjuster will want to know in their investigation of a car accident is where the driver was headed at the time of the crash. This is pertinent information for adjusters because it tells them what the vehicle was being used for when the accident happened. If you were on your way to a sales appointment or an installation, chances are you will be denied under the terms of a personal auto insurance policy. If you were delivering products to a customer, your business use will come under scrutiny and again, you'll probably be denied on the basis of the way you were using the vehicle.

Vehicle Usage is the Key

Rather than the number of passengers aboard, the use of the vehicle is the key for determining the applicability of personal or commercial car insurance. If you are out on the road for a business purpose, you likely need commercial insurance. If you have a business name emblazoned on the vehicle, you definitely need a commercial policy. If the vehicle is titled in a company name rather than your own, this kind of coverage is mandatory in the eyes of adjusters.

In the aftermath of an accident, adjusters have ways of finding out the truth about vehicle usage. We cannot hope to just tell a lie and move on to the next question. If they have any reason at all to not believe you, they will probably find out the truth. For example, if you are a candle salesman and you sell to different stores, they'll find out based on the answer to the question of where you work and what you do for a living. That huge box of candles in the back seat will be a dead giveaway that your trip an hour away from home was no pleasure ride.

If you drive a truck to work and have ladder racks and tool boxes, the vehicle equipment itself will be a strong source of suspicion. Don't risk denial of a claim and cancelation of your policy. Make sure you are covered before an accident. There is no need for uncertainty. Talk to your insurer about your specific situation and what you intend to use the vehicle for, and they will be glad to let you know whether you need a business insurance policy in your circumstance. Don't pay money for insurance that is not going to do you any good when you need it.

Many Drivers Need Commercial Coverage

Those of us who work in the construction and remodeling industry need commercial coverage for the higher liability limits alone. Without even considering the business use angle, the higher liability limits make it a no brainer to opt for a business policy over a personal one. If you get sued the claimant can go after both personal and business assets. This is especially true if your insurance situation is questionable. Don't take the risk of losing everything just to save a few dollars. Get a good policy that protects you the way you need to be protected as a driver and a self employed worker.

Commercial car insurance for self employed laborers offers great protection against liability costs and other expenses. The premiums might be higher than they are for a personal auto policy, but the price difference may not be as large as you expect. Choose commercial insurance for self employed drivers and make sure you are totally covered.


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