Checklist for Commercial Auto Insurance
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Checklist for Commercial Auto Coverage

If you own a vehicle, you probably have personal auto insurance. But if you use that same car to do your job, are you still covered? It can be tricky to know when you need to make the switch to insurance for commercial vehicles.

This checklist can help you figure out when you might need car insurance for business vehicles based on the driving habits of you and your team.

Do You Use a Personal Vehicle for Work?

Let's look at some ways you might use your personal vehicle for work purposes. Check all that apply.
How you use your vehicle Check if yes
1. I drive my personal vehicle to get to work.  
2. Sometimes I drive my personal vehicle to a meeting with a client.  
3. I use my personal vehicle at least a couple times a week to meet with clients or to perform work at their office.  
4. I use my personal vehicle to haul around the stuff I use for my job, such as my tools or products I need to deliver to clients. Sometimes my employees even travel with me.  

Now for the fun part. Let's see what type of business vehicle insurance you may need based on your "yes" answers.

  • Question 1: Using a car for ordinary commuting usually isn't enough to trigger a need for Commercial Auto Insurance. Your personal auto policy should be fine.
  • Question 2: This one's a gray area. Depending on how much driving you do to meet clients, you may benefit from commercial vehicle coverage. Check with your personal auto agent to make sure you're covered.
  • Question 3: If you frequently use a personal vehicle to travel for business, you may want to consider commercial vehicle insurance. Again, it doesn't hurt to check with your personal auto agent to see what they recommend.
  • Question 4: It sounds like you're very actively using your personal vehicle for work. Because of the increased risk, there's a good chance your personal auto policy won't cover a work-related accident. You could probably benefit from a Commercial Auto Insurance policy.

Check out "Why Personal Car Insurance Won't Cover Your Business Driving" for a more in-depth explanation.


Do You Own a Business Vehicle?

If your vehicle is in your business's name, read over the following questions and check all that apply.
How Your Vehicle is Titled Check if yes
1. I use the company vehicle to travel to meet clients, or an employee does.  
2. I travel to work sites and / or to meet with clients using the company vehicle, or one of my employees does.  
3. I make deliveries using the company vehicle, or an employee does.  
4. I use the company vehicle to haul equipment or tools, or an employee does.  
5. Employees or clients sometimes ride with me in the company vehicle.  

If you checked off any of these questions, there's a good chance you need car insurance for your business vehicle – especially because the vehicle is owned by your business. There are plenty of commercial vehicle insurance coverage options, so talk to your agent to find the best fit for your business.


Do You Have Employees Who Drive Their Personal Vehicle for Work?

Now let's take a look at a few scenarios where employees use their personal vehicle on behalf of your business. As with the other lists, check all situations that apply.
Employee Vehicle Use Check if yes
1. Employees occasionally use their own vehicles to run company errands, such as going to the post office or picking up coffee.  
2. Employees use their own vehicles to travel to or between work sites.  
3. Employees drive their own vehicles to make deliveries for my business.  
4. Employees travel together for work in a vehicle owned by one of my employees.  

If you checked any of these questions, you may want to consider purchasing Hired and Non-Owned Auto Insurance. It can cover accidents that happen when employees use their own vehicles for your business.

There are two major reasons you may want to consider this type of insurance:

  • Commercial Auto Insurance may not cover vehicles your business doesn't own.
  • If an employee gets into an accident while driving on company business, you can be held liable – even if the employee was driving their own vehicle.

In short, if an employee goes on a bagel run, crashes their car, and hurts someone else, Hired and Non-Owned Auto Insurance helps cover the damages so they don't come out of your pocket.

Commercial Auto Insurance: Further Reading