Every vehicle on the road in Texas as well as the entire country must be covered under an auto insurance policy of some type. If that vehicle is used for work purposes, it must be covered by an appropriate business auto insurance policy.

Unfortunately, business auto insurance services find that in many cases, companies put themselves and others at risk by not purchasing the right policies for the right vehicles according to how they are used. To ensure proper coverage, even small businesses must understand what constitutes company use and then buy the right policy from their business auto insurance agency.

What Defines A Personal or Business Vehicle?

Business auto insurance services across the country recognize two main motor vehicle classifications:  personal and commercial. A personal vehicle is one owned by an individual and used strictly for personal reasons such as running errands, taking personal trips, and other non-work related uses.

A business or commercial vehicle is recognized by a business auto insurance agency as one used exclusively for company purposes. Although the difference between the two seems to black and white, there are many instances when vehicles used for work purposes are not actually covered by a business auto insurance policy.

Personal and Business Auto Insurance Policies Differences

The main differences between personal auto policies and those that cover commercial vehicles are what uses are covered and the extent of coverage provided. Because businesses typically have higher liabilities and face greater risks, personal policies do not cover commercial use. Commercial auto insurance typically costs a bit more than personal auto coverage; however, it has higher liability limits to account for that increased risk.

Commercial policies purchased from a business auto insurance agency also provide some additional coverage that personal policies do not. These benefits often include rental reimbursement, non-owned vehicle coverage, non-owned liability coverage, non-owned trailer coverage, and other protection.

When Do You Need a Business Auto Policy?

Any vehicle used solely for company purposes must be covered by a business auto insurance policy. When a personal vehicle is used for work purposes, it should either be covered by a commercial policy or have coverage expanded on the personal policy based on vehicle usage. If a vehicle under a personal policy is involved in an accident while being used for work purposes, coverage may be denied.

Companies need to recognize what actually constitutes business use. Business auto insurance services stress that in addition to uses such as transporting supplies, employees, or clients as well as running company errands, job-to-job travel, and other normal company uses, there are some others that may fall under commercial use as well.

These things include transporting goods in exchange for compensation or delivery services, running company errands, transporting people for the company, and driving people to various destinations for compensation such as in rideshare programs. It is within this gray area that business owners put themselves at risk without realizing it.

The best advice a business auto insurance agency can offer any Texas company is to purchase an appropriate business auto insurance policy to cover all company-owned vehicles and always separate company and personal use.

Every company’s needs are different and should be discussed in detail with experienced business auto insurance services. Having the right policy in place provides essential liability coverage not only for a company and its employees but anyone using a vehicle for work purposes!

Need Business Auto Insurance in College Station?

Contact Jones & Associates For Business Auto Insurance Services!

Call (979) 599-7532!