Commercial auto insurance is designed to meet the needs of businesses. For many companies, the need for commercial auto insurance is obvious, but for others it’s not as cut and dry. Those who work from home, including freelancers and small business owners, are often unsure if they need to shop for commercial auto insurance in San Diego or if their personal auto insurance policies are sufficient. Here’s what you need to know to find out.
How Commercial and Personal Auto Insurance Differ
Although an insurance policy’s coverage can vary depending on the carrier and the options you select, commercial auto insurance has coverage for the issues unique to businesses that wouldn’t be covered under a personal policy. You can set up employees as authorized drivers under a commercial auto insurance policy, and these policies provide coverage for any passengers you or your employees are driving for business reasons. Since businesses may need to transport expensive equipment and other types of supplies, commercial policies include coverage for situations such as this.
Legal Requirements for Businesses
If any driving is involved as part of your business, you need auto insurance that meets California’s liability minimums for businesses. These minimums are higher than those for personal insurance policies because businesses have greater liability concerns than normal drivers. A commercial auto policy will meet the liability requirements, whereas a personal policy might not.
Getting a Commercial Auto Insurance Policy When You Work from Home
Working at home might seem to rule out the need for a commercial policy, but this isn’t always the case. It depends on the type of business you have and how it’s set up. If you ever need to pick up any costly equipment or other supplies for your business, a commercial policy could provide the protection you need. Although you may work from home, if you run a business and you have employees who drive for anything other than commuting, a commercial policy is a good idea to cover you in case of an accident.
When You Can Stick to Personal Auto Insurance
Since the premiums on commercial policies are higher on average than personal San Diego auto insurance premiums, it makes sense to stick to a personal policy if it’s a valid option and you don’t need more coverage. If you work exclusively from home and you either don’t have any employees or the employees you have never drive while on the job, a commercial policy isn’t necessary. In this situation, because you’re only using your car for personal reasons, a personal policy will suffice. A commercial policy would be a larger expense for unnecessary protection.
Whether you need a personal auto policy or commercial auto insurance, you can rely on American Tri-Star to meet your coverage needs. In addition to affordable auto and business insurance, we also offer health, RV, motorcycle, and homeowners insurance in San Diego. Give us a call today at 619-272-2100, and one of our friendly agents would be happy to provide a free quote.