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 Do You Need Commercial Auto Insurance?

May 2, 2019

Your specific auto insurance policy will be determined by the activities you most often use your vehicle for. A commercial auto insurance policy is necessary for those who use their vehicle to complete tasks related to the driver’s profession, occupation, or business. To insurance companies, commuting to work alone is not considered a “business task”, and therefore does not require a commercial policy.

Let’s look at some frequently asked questions regarding this type of insurance to learn more about whether or not it’s suitable for you:

Q: What classifies my vehicle as “Commercial”?

A: You’ll likely need a commercial auto insurance policy if you:

  • Use your vehicle to conduct a service
  • Use your vehicle to transport people and/or goods for a fee
  • Haul a significant weight of equipment or tools required for your business
  • Tow a trailer carrying equipment or tools required for your business
  • Require higher limits of liability due to the nature of your work
  • Have employees that will be operating the vehicle for occupational reasons
  • Own the vehicle under the name of a partnership or corporation

Q: What does Commercial Auto Insurance cover?

A: Personal injury, injury to others, lost wages due to injury, damage to property, collisions, medical payments, uninsured motorists involved in an accident with your vehicle, loading and unloading liability, and more. Policies can be customized to best fit your needs!

Q: How much does Commercial Auto Insurance cost?

A: Policy costs depend on the types and number of commercial vehicles needing insured, the size of your business, how much risk your occupation involves, and the amount of coverage needed. Bulk discounts are usually available for coverage of commercial vehicle fleets.

Q: Is Commercial Auto Insurance Tax Deductible?

A: Yes – when you use your vehicle for business or commercial use, your commercial auto coverage is tax deductible. For those who are self-employed, you may be eligible to deduct your commercial policy premium under Schedule C.

Q: What if I start using my personal vehicle for commercial purposes related to my business?

A: You have two options here and will need to either 1) ensure you have sufficient liability coverage on your personal policy in order to cover larger damages obtained while using the vehicle for commercial purposes OR 2) purchase commercial auto insurance for your vehicle.

Looking for an insurance agent in Carroll County? The professionals at American Heritage are here to help. Contact us for more information on commercial auto insurance policies for your business vehicles today!

What Our Clients Say...

Over and above the time, effort and saved dollars that you put into earning our business – your careful attention to detail in getting our coverage right is what mattered the most. Thank you for educating me about the differences in coverage and for reallocating our insurance dollars to minimize our exposure while maximizing our policies.

- Eric L, President of Jeffrey Press, Inc.

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Frederick County: Frederick (21701, 20702, 21703, 21709), New Market (21774) , Mount Airy (21771), Urbana (21704), Ijamsville (21754), Walkersville (21793), Libertytown (21762), Damascus (20872), and more.

Howard County: Clarksville (21029), Columbia (21044), Cooksville (21723), Dorsey (21075), Elkridge (21075), Ellicott City (21043), Fulton (20759), Glenelg (21737), Glenwood (21738), Granite (21163), Hanover (21076), Highland (20777), Jessup (20794), Lisbon (21765), Marriottsville (21104), North Laurel (20723), West Friendship (21794), Woodbine (21797), Woodstock (21163), and more.

Montgomery County: Olney (20832), Damascus (20872), Laytonsville (20882), Silver Spring (20910), Clarksburg (20871), Gaithersburg (20878), Germantown (20876), Bethesda (20816), Chevy Chase (20815), and more.

Baltimore County: Arbutus (21227), Catonsville (21228, 21250), Cockeysville (21030, 21031, 21065), Dundalk (21222), Edgemere (21219), Essex (21221), Garrison (21055), Lansdowne (21227), Lochearn (21207), Lutherville (21093), Middle River (21220), Milford Mill (21244), Overlea (21236), Owings Mills (21117), Parkville (21234), Park Heights (21215), Pikesville (21208), Randallstown (21133), Reisterstown (21136), Rosedale (21237), Timonium (21093), Towson (21204), White Marsh (21162), Woodlawn (21207), and more.

Carroll County: Eldersburg (21784), Finksburg (21048), Hampstead (21074), Manchester (21102), Marriottsville (21104), Taneytown (21787), Union Bridge (21791), Westminster (21157, 21158), Mount Airy (21771), New Windsor (21776), Sykesville (21784), Woodbine (21797), Taneytown (21787), and more.

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