Personal and commercial auto insurance are separate policies and do not mix. If your vehicle is classified as a commercial vehicle, it must be insured on a commercial policy. Most people drive their vehicles to and from work and they are not considered a commercial vehicle. There are certain criteria your vehicle must meet to determine if you need a commercial auto policy. As always, it is important to check with your agent about your situation. It’s much better to understand your coverage now, rather than be scrambling after an accident.

Conditions that indicate a commercial auto policy may be needed

  • Vehicle is titled in a business name
  • Vehicle has any type of signs or advertising on it, whether printed or magnetic signs
  • Vehicle weighs over 10,000 pounds
  • Vehicle is used to deliver people or goods for a profit. Examples: pizza delivery driver, flower delivery,  charging to drive people to appointments, etc.
  • Transporting people as a part of your business (but not for profit) example: a car mechanic that transports customers while their car is being fixed
  • Vehicle is driven over 20,000 miles a year

If your vehicle meets any of these criteria, contact your agent to go over the policy conditions.

Conditions that typically do not require a commercial auto policy

If you’re using your vehicle for these purposes, it would typically not be considered a commercial vehicle:

  • Driving your vehicle back and forth to work each day
  • Driving your vehicle to continuing ed that is required for work
  • Driving your vehicle to different work locations throughout the day

If you see statements in both areas that are true, make sure to talk to your agent and review your policy conditions.

What is the danger of having the wrong insurance? If your policy is not insured correctly, you may not be covered if there is a claim, leaving you on the hook for thousands of dollars. Protect your money by making sure you are properly insured!