Commercial Vehicle Insurance FAQs
Everything you need to know about commercial vehicle insurance and more.
Written by
Christine Lacagnina has written thousands of insurance-based articles for TrustedChoice.com by authoring consumable, understandable content.
Reviewed by
Cara Carlone is a licensed P&C agent with 20 years of experience. She has her P&C license in RI and TX and holds CPCU, API, and AINS designations.
Commercial vehicle insurance is essential coverage for most types of businesses that rely on cars, trucks, and other vehicles for work purposes. But it can also be a complex and confusing coverage. That's why it's helpful to understand the details about this insurance before you ever get a policy.
No matter your industry, these common commercial auto insurance questions can provide helpful guidance. An independent insurance agent can answer any further questions and help you find coverage for your business. To begin with, here's a big list of all the questions you might have about commercial vehicle insurance.
Commercial vehicle insurance provides coverage for any vehicle you use for business purposes and your commercial drivers. As a business owner, you can get commercial vehicle coverage for a single vehicle or a fleet of vehicles.
Coverage protects your commercial vehicles from weather damage, accidents, and many other types of incidents. If you or one of your drivers is at fault in an accident that injures another person or damages their property, the liability coverage in your commercial vehicle policy will cover the costs of the claim up to the limit of your policy.
Many business owners choose to buy a commercial umbrella policy to cover the costs of large liability claims that exceed the limits of the commercial vehicle liability policy. Commercial umbrella insurance often comes in $1 million dollar increments, which can greatly help cover the costs of liability claims and lawsuits, protecting the business financially.
You need commercial vehicle insurance for any automobile, taxi, van, limo, bus, or small truck you use for business purposes because a personal auto policy won't cover this type of use. Coverage protects you and your business from the costs of liability claims related to third-party property damage and bodily injury you may incur while using commercial vehicles.
For larger commercial vehicles such as tow trucks, cement trucks, construction vehicles, tractor-trailers, or semi-trucks, you'll need a commercial truck insurance policy. Not only is your commercial vehicle policy critical for protecting your business financially, but it also may be required by law.
There are several ways to get commercial vehicle insurance, such as by shopping for quotes online, although you won't necessarily find the best coverage at the lowest rates that way. You also won't have the reassurance that your coverage really matches your business's unique needs.
One of the best ways to get commercial vehicle insurance is through an independent insurance agent. Here are some advantages of working with these agents:
- Independent insurance agents work with multiple commercial truck insurance companies and can shop for the best rates for you.
- Your agent is local, available to meet in person, and can answer all your questions so you can make an informed decision about your coverage.
- Your agent will get to know you, your business, and your vehicle usage to help ensure your coverage is sufficient to protect you and your company in case of an accident.
- Your independent insurance agent can meet all your commercial insurance needs and package the required coverages into one convenient policy.
You need commercial auto insurance for any vehicle your company uses for business purposes, any vehicle that has a commercial license plate or tag, and any vehicle that's registered as a commercial automobile.
You must also get commercial auto coverage if your employees drive or use vehicles for business purposes, whether making deliveries, driving people to the airport, or running errands on behalf of the business.
If you use your vehicle for any of the following functions, you may also be required to get commercial coverage:
- Using a vehicle to carry equipment or to transport freight
- Transporting flammable or hazardous materials
- Transporting housekeeping equipment for business use
- Hiring your vehicle out to tow other vehicles
- Delivering any goods, such as pizza, newspapers, or any types of wholesale or retail products
- Transporting people as a chauffeur, limousine service, or taxi service
Some situations and certain occupations may be covered under standard auto policies, but you should always ask your independent insurance agent if your vehicle use warrants a commercial policy.
Yes, your commercial auto coverage is often tax-deductible. Many situations allow you to deduct the cost of commercial auto insurance premiums when vehicles are used for business purposes.
If you're self-employed, you may be able to deduct your commercial auto insurance premium under Schedule C. If you're an employee and don't receive mileage or expense reimbursement, you can use Form 2106 (Employee Business Expenses). Contact the IRS or a tax adviser for clarification.
Personal use may be covered for a company-owned vehicle provided the business has commercial auto coverage. If you're driving your own vehicle to work without using it for commercial purposes, it should be covered under your personal auto policy.
Using your personal vehicle on occasion for commercial purposes might be sufficiently covered under your personal policy as well. But if you use your own vehicle for any kind of business purpose, be sure to talk with your independent insurance agent.
If your personal vehicle is insured as a commercial vehicle and other members of your family use it for non-work purposes, you might have to get a non-owned vehicle endorsement. Ask your independent insurance agent about what's required for these situations.
If you use your own vehicle to deliver pizza, there are a few options you can consider in terms of coverage.
- Buy a commercial lines policy.
- Get hired/non-owner auto coverage from the pizza business owner. This can provide you with liability coverage for injuries and property damage to others, but won't cover property damage to your own vehicle.
- Obtain coverage from insurance companies that offer policies specifically tailored for personal vehicles used for delivery situations. The insurance company may even discount the rates if you use the vehicle for seasonal use, such as a summer job.
One of the best ways to find a commercial vehicle policy to suit your individual insurance requirements is to speak with an independent insurance agent. These agents can compare policies and rates so you can find a policy you can afford. If you use your vehicle for commercial purposes or plan to do so in the near future, contact an independent insurance agent today to find the coverage you really need.
How Can an Independent Insurance Agent Help Me Find Commercial Auto Insurance?
Independent insurance agents also have access to multiple insurance companies, ultimately finding you the best commercial auto coverage, accessibility, and competitive pricing while working for you. They'll assess your unique business's needs for its company vehicles and get you matched to the ideal policy. And down the road, your agent can help you file commercial vehicle insurance claims and update your coverage as necessary.
https://www.iii.org/publications/insuring-your-business-small-business-owners-guide-to-insurance/specific-coverages/business-vehicle-insurance