Your personal auto insurance does not cover the business use of your vehicle. Commercial auto insurance isn't for just for company vehicles doing delivery services or repair. This coverage is for anyone who uses their vehicle for work. Here is more information about who needs commercial auto insurance and why you should get this type of policy.

Who Needs Commercial Auto Insurance?

If you use your vehicle for any type of business activity, other than simply going to and from work or to meetings, you need commercial auto insurance. Here are some common examples of business activities where commercial insurance is beneficial.

• You Get Paid to Drive People Around: Even if you drive for a rideshare service, you need commercial auto insurance to cover added liability issues.
• You Do Deliveries: Even if you only do deliveries occasionally, you should get commercial auto insurance. This includes pizza or newspaper deliveries.
• You Keep Tools and Equipment in Your Vehicle: Commercial auto insurance is a must if you keep tools and equipment in or on your vehicle.
• You Use Your Vehicle for Towing: If you tow other vehicles, or even trailers, for pay, then commercial auto insurance covers more than your personal insurance.
• You Let Employees Use Your Vehicle: Commercial auto insurance covers your employees who also use your vehicle to do their work.

What Does Commercial Auto Insurance Cover?

Commercial auto insurance extends the liability coverage for your vehicle. It also covers any other vehicle you drive while on business. It also extends this coverage to temporary rental vehicles if your regular business vehicle is non-operable. Commercial auto insurance also covers your property such as your tools, trailers, and equipment stored on or in the vehicles.

What Will Happen if You Don't Have Business Coverage?

If you don't have commercial auto insurance and you get into an accident while on a business errand, then you will not be covered. Worse than that, if you failed to disclose the true use of your vehicle, your insurance company could drop you. Even if you use your vehicle for a mix of personal and business use, tell your insurance company.

If you use your vehicle for business purposes, even if you are self-employed and only do it part-time, then get commercial auto insurance. This type of insurance protects you if you or an employee get into an accident. For more information about the different types of commercial auto insurance for your business, see a business insurance agent for more information.