Commercial Automobile Insurance And Personal Vehicles
Commercial automobile insurance plans understandably protect vehicles being used for commercial purposes, such as fleet vehicles for a large corporation, tow trucks, delivery vans and other vehicles used in commerce and other business pursuits.
And they can be relatively affordable compared to similar personal auto plans due to the fact many fleet vehicles are maintained regularly and their drivers almost always must pass driving tests and drug screenings before they ever get behind the wheel.
And if they are involved in an accident, they face yet another drug screen to ensure the driver was not impaired, and random drug tests also can be administered to prevent lapses of drug and alcohol use.
But what many people do not realize is their vehicles might need to have the added protection of commercial automobile insurance even if they have full coverage plans in place on their personal vehicles.
In recent years, most car insurers have excluded coverage when personal vehicles are used for what insurance companies consider to be commercial uses.
That includes anything from delivering newspapers or pizzas to taking a group of people to church on Sundays.
If involved in an accident while engaged in such activities, there is an excellent chance a personal auto insurance plan will not pay the costs, and that could be a tragic event if the vehicle is financed, damaged heavily or totaled in an accident or other mishap.
It's bad enough to have to pay a $500 or $1,000 deductible on a financed vehicle.
But if a financed vehicle is damaged, totaled or stolen while engaged in a commercial activity, not only won't the insurer pay, but the lender can demand immediate payment of the full amount owed.
And that would be a financial hit that all but would assure anyone but the most wealthy will be stuck paying off a huge debt for a vehicle the no longer have as the financing company would reclaim it, sell it for whichever amount they could get and bill the borrower for the rest.
The reason insurers will not cover accidents and other claims arising from commercial activities on vehicles that have only personal auto insurance plans in place is due to the greatly increased risk of using a personal vehicle for commercial purposes.
People might be forced to drive numerous times during the worst times of day, and that might mean a greatly increased chance of being involved in an accident or causing injury to one or more people.
Personal auto insurance plans only apply while commuting and using a vehicle for normal reasons, such as going to the store and back and forth to work.
If in doubt about the need for commercial automobile insurance, it pays to contact an insurance provider and see if any of the uses might qualify as a commercial use and possibly jeopardize the insurance protection if involved in an accident or other mishap that otherwise might have been covered with a personal auto plan.
An insurer will be happy to add a business or commercial rider to a personal plan to protect against the increased risk and liability arising from even occasional business activities.
And they can be relatively affordable compared to similar personal auto plans due to the fact many fleet vehicles are maintained regularly and their drivers almost always must pass driving tests and drug screenings before they ever get behind the wheel.
And if they are involved in an accident, they face yet another drug screen to ensure the driver was not impaired, and random drug tests also can be administered to prevent lapses of drug and alcohol use.
But what many people do not realize is their vehicles might need to have the added protection of commercial automobile insurance even if they have full coverage plans in place on their personal vehicles.
In recent years, most car insurers have excluded coverage when personal vehicles are used for what insurance companies consider to be commercial uses.
That includes anything from delivering newspapers or pizzas to taking a group of people to church on Sundays.
If involved in an accident while engaged in such activities, there is an excellent chance a personal auto insurance plan will not pay the costs, and that could be a tragic event if the vehicle is financed, damaged heavily or totaled in an accident or other mishap.
It's bad enough to have to pay a $500 or $1,000 deductible on a financed vehicle.
But if a financed vehicle is damaged, totaled or stolen while engaged in a commercial activity, not only won't the insurer pay, but the lender can demand immediate payment of the full amount owed.
And that would be a financial hit that all but would assure anyone but the most wealthy will be stuck paying off a huge debt for a vehicle the no longer have as the financing company would reclaim it, sell it for whichever amount they could get and bill the borrower for the rest.
The reason insurers will not cover accidents and other claims arising from commercial activities on vehicles that have only personal auto insurance plans in place is due to the greatly increased risk of using a personal vehicle for commercial purposes.
People might be forced to drive numerous times during the worst times of day, and that might mean a greatly increased chance of being involved in an accident or causing injury to one or more people.
Personal auto insurance plans only apply while commuting and using a vehicle for normal reasons, such as going to the store and back and forth to work.
If in doubt about the need for commercial automobile insurance, it pays to contact an insurance provider and see if any of the uses might qualify as a commercial use and possibly jeopardize the insurance protection if involved in an accident or other mishap that otherwise might have been covered with a personal auto plan.
An insurer will be happy to add a business or commercial rider to a personal plan to protect against the increased risk and liability arising from even occasional business activities.
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