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Commercial and personal insurance: the difference and what coverage do I need if I transport cargo

If I use my personal car for work purposes, is it commercial? What do you mean exactly? And if I have a commercial vehicle, what coverage do I need?

If it is a company that uses a vehicle for different reasons then commercial auto insurance is most likely needed. In the case of a sole proprietorship, only personal auto insurance may be required. The rule is simple, however many times doubts arise. What if I use my personal car for business work purposes?

Basically if the vehicle is used for commercial purposes, commercial auto insurance will most likely be needed. However, if you are a sole proprietor and use your vehicle only to travel to one or two workplaces a day or to get to work, personal auto insurance may be sufficient.

The type and weight of the vehicle are also factors to consider. If the vehicle is heavier than a full-size pickup truck or SUV, such as a dump truck, tow truck, semi-trailer, or commercial trailer, commercial auto insurance may be required. These heavy vehicles can cause significant damage in the event of an accident and often require special insurance coverage.

Required commercial liability limits may also influence the need for commercial auto insurance. If the commercial vehicle needs higher liability limits, commercial auto insurance is required. This is so because these types of policies usually offer higher limits than personal auto insurance policies.

In summary, to determine if you need commercial auto insurance, you should consider whether your business owns and drives the vehicle, the purpose and frequency of use, the type and weight of the vehicle, and the required liability limits. If you have special needs, such as specific coverage, transport of goods or people, or special equipment, you must take out commercial auto insurance.

Commercial vehicle insurance and the most frequent cases

Here are some common situations where commercial auto insurance is often required:

Regular business use of the vehicle: If you use your vehicle regularly for business activities, such as making deliveries, transporting merchandise, visiting customers or suppliers, then you will need commercial auto insurance.

Vehicles registered in the name of the company: If you have a vehicle registered in the name of your company or business, instead of being registered in your personal name, you will need commercial auto insurance.

Transportation of passengers: If you use your vehicle to transport passengers for money, such as a shuttle service or car rental service, you may need commercial auto insurance that covers this specific activity.

Use of the vehicle for professional services: If you use your vehicle to provide professional services, such as plumbing, electrical, construction or landscaping, you may need commercial auto insurance to cover any damages or liabilities related to your business activity.

Use of the vehicle with commercial equipment: If you equip your vehicle with tools or equipment related to your business, such as construction equipment or catering equipment, you may need commercial auto insurance to protect those business assets.

If your job is cargo transportation you definitely need commercial insurance.

It is important to remember that the specific requirements can vary depending on the state and the type of business you have. We encourage you to check with our insurance agents for the most accurate and up-to-date information on commercial auto insurance requirements in your area.

What insurance do I need if I transport cargo?

As a trucker in the United States, there are various types of insurance you should consider to protect yourself, your vehicle, and your cargo. These are some of the most common insurance that truckers usually need in the United States:

Auto liability insurance: This insurance is required in most states in the United States. Covers damages and injuries caused to third parties in the event of an accident in which you are responsible.

Cargo insurance (cargo insurance): This insurance protects the cargo you transport in your truck in case of loss, damage or theft. Making sure you have adequate cargo insurance is important to protect your business and meet the requirements of your customers.

Personal accident insurance (occupational accident insurance): This insurance provides coverage in case of accidents or injuries that occur while you are working as a trucker. It can cover medical expenses, temporary or permanent disability, and in some cases, compensation for accidental death.

General liability insurance: This insurance covers personal injury, property damage, and legal claims that are not related to driving, such as loading or unloading accidents.

Owner-operator insurance: If you own your truck and operate your own business, you may need specialized owner-operator insurance. This type of insurance can combine liability coverage, physical damage coverage for your truck, and other specific benefits for owner-operators.

These are just some of the most common insurance that truckers need in the United States. The exact coverage you need can vary based on several factors, including the type of cargo you’re transporting, the distance you’re traveling, and applicable state and federal regulations.

Saint George Insurance Brokerage Inc. agent for Progressive and Mercury.

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