Nearly two years ago Safeguard Insurance posted a blog article entitled “When is commercial auto insurance not the right choice?” It was written in response to inquiries from several agency customers that thought a commercial auto insurance policy would provide better coverage and better pricing. The article outlined the reasons why moving a personal use auto to a Nevada commercial auto policy may not be the best choice.
A further discussion is warranted as a follow up to that article. This time the question is when is commercial auto insurance the right choice? The answer, of course, depends on several factors including the type of vehicle, the use of the vehicle and the intended drivers.
First, let’s discuss the type of vehicle and how that affects the decision to purchase commercial auto insurance. There are certain vehicles that simply do not fit the underwriting guidlines of a personal auto policy. An example would be a large box trucke with a GVW over 14,000 pounds. A truck of that type is clearly intended for commercial use. Another example would be a bus designed to transport passengers. Again, a bus is clearly designed for commercial use. What about vehicles, such as a pickup truck, that could be used for business and personal reasons? Whether a pickup truck should be on a commercial auto policy depends on the intended use.
The intended use of a vehicle is the second factor in determining whether it should be on a commercial auto policy. If the vehicle is used for a business purpose, it should probably be on a commercial auto policy. A pickup truck that is used by a contractor to carry tools, equipment and materials to a jobsite is clearly business use. A vehicle that is driven by salesperson to visit customers should also be on a commercial auto policy. There are numerous examples of business use that would require a commercial auto policy, such as:
- Transporting goods for hire, such as trucker or moving company
- Hauling materials to and from construction sites
- Transporting people, whether for hire or as a courtesy
- Delivery of merchandise, whether wholesale or retail
- Towing or transportation of other vehicles
- Artisan use such as contractors hauling tools, equipment and materials.
The last consideration is the intended drivers of the vehicle. If the drivers will be the employees of a business, driving for the benefit of the business, then a commercial auto policy is appropriate. It is important the business owner disclose all possible drivers to the insurance carrier. The business should also have a procedure to check driving records pre-hire and regularly after hiring.
Getting a Quote for Nevada Commercial Auto Insurance
At Safeguard Insurance, we have been providing Nevada commercial auto insurance for nearly 20 years. We represent many insurance carriers that provide commercial auto insurance for all types of businesses including retail, wholesale, transportation, trucking, towing service, auto repair and contractors. If the vehicle is used for business, we can find the right insurance coverage at the right price. For a no-obligation quote on Nevada commercial auto insurance, call Safeguard at 702-638-0022 or request a quote online.