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Busting 6 Myths Surrounding Commercial Auto Insurance

Myths of Commercial Auto Insurance Myths of Commercial Auto Insurance

Apr 17, 2024

Commercial Auto Insurance

Commercial auto insurance is a critical safeguard for businesses relying on vehicles for various operations. However, misconceptions can cloud the understanding of this vital coverage. Let's debunk six common myths surrounding commercial auto insurance to ensure businesses have accurate information when navigating the road of coverage.

Myth 1 - Although I use my vehicle for work-related purposes, I am not self-employed. My auto coverage will cover any losses.

Reality: Personal auto insurance typically excludes coverage for vehicles used primarily for business purposes. If you're using your vehicle for work, especially as part of a business, you likely need commercial auto insurance. Personal policies might deny claims if the vehicle is primarily used for business.

Myth 2 - My tools and equipment are covered if I leave them in a commercial vehicle.

Reality: Commercial auto insurance primarily covers the vehicle itself, not the tools or equipment inside. Business owners should consider separate coverage, such as inland marine insurance, to protect tools and equipment during transit.

Myth 3 - When my staff operates my commercial cars, they are covered by insurance.

Reality: While your employees may be covered to some extent, it's essential to ensure that your commercial auto policy provides adequate coverage for all potential drivers. Some policies might require you to list employees explicitly, and coverage may vary based on their driving records.

Myth 4 - Since my business is seasonal, I don't need to keep my commercial auto policy active when it's not in use.

Reality: Even during off-seasons, maintaining continuous coverage is crucial. Cancelling your policy and then reapplying later can lead to higher premiums due to gaps in coverage. Opting for a comprehensive policy that allows for seasonal adjustments is a more effective strategy.

Myth 5 - Because I deliver packages, my auto insurance covers my car.

Reality: Delivery activities often fall under the category of business use, requiring commercial auto insurance. Personal policies may not cover accidents that occur while delivering goods or services for compensation. It's crucial to clarify coverage specifics with your insurer to avoid potential gaps.

Myth 6 - If your automobile is stolen, vandalized, or damaged by falling tree limbs, hail, flooding, or fire, your insurance will pay for it.

Reality: Comprehensive coverage is necessary for protection against non-collision events like theft, vandalism, or weather-related damage. Without comprehensive coverage, these incidents may not be covered, leaving you to bear the financial burden of repairs or replacements.

Understand the Realities of Commercial Auto Insurance at Little & Sons Insurance Services

Understanding the realities of commercial auto insurance is paramount for businesses relying on vehicles for their operations. Little & Sons Insurance Services is committed to providing clarity and tailored solutions to meet your specific needs. Contact us today to discuss commercial auto insurance or any other insurance requirements. Call us at 1-844-954-8853 for a consultation.

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