North Carolina Commercial Auto Insurance

Business vehicle ownership in North Carolina, or anywhere, carries with it a high-risk potential for lawsuits, legal problems and property damage. If you use automobiles as part of your daily business, your risk is multiplied with every additional vehicle and driver. Here's all you need to know about commercial auto insurance, and to keep yourself, your employees and your business protected.

What is commercial auto insurance?

Commercial auto insurance provides liability coverage for business, and sometimes personal, vehicles or for certain vehicle uses that fall outside the parameters of personal auto insurance. If you own one or more company vehicles, use your personal vehicle for specific business purposes, deliver any type of goods, or allow employees to use your personal vehicle to conduct business, it may be time to consider commercial coverage.

Do I really need commercial auto insurance?

A personal auto insurance policy just isn't designed to account for the increased risk that comes with using a vehicle for commercial purposes. Furthermore, commercial use of a vehicle may actually violate the terms of a personal auto insurance policy, which means that if you are in an accident, your claim may be denied, even if the accident occurred while operating your vehicle for personal use. If you use your personal vehicle for business more than three times per month, commercial auto insurance may be the best option.

What professional uses don't require commercial coverage?

• If you operate a side business such as cosmetic or kitchenware sales, you may not need a commercial policy, provided this is not your primary source of income and that operating the business does not substantially increase your mileage.
• Professionals who regularly transport clients - for example, lawyers, clergy and real estate agents - may not be required to purchase a commercial policy. Taxi drivers and chauffeurs, however, should always have commercial insurance.
• If you only use a personal vehicle to commute to and from your place of business, you probably do not need a commercial policy.

What's the real difference between commercial & personal auto insurance?

Using a vehicle for business purposes creates greater liability. Here are just a few things a commercial auto insurance policy might cover that wouldn't normally be covered by a personal auto insurance policy.

• Coverage while you are hauling a trailer or equipment you do not own for profit or business.
• Coverage for and multiple vehicles and multiple employees driving business or personal vehicles.
• Coverage for additional vehicles you may purchase for business use.
• Coverage that will pay for you to rent a business vehicle if yours is temporarily inoperable.
• Coverage in the event that you or one of your employees needs to drive a vehicle that you do not own.

How do I save money on commercial auto insurance?

Saving money on commercial auto insurance isn't much different than saving on personal auto insurance. Here are just a few ways you may be able to reduce your premium:

• Hire employees with good driving records.
• Offer drivers additional training in winter driving or defensive driving.
• Use the same company for all of your insurance needs, and ask about package discounts.
• Purchase vehicles with additional safety features, or have them installed on vehicles you already own.
• If you have the option, park your business vehicles in a garage or secure lot.

Whether you're a delivery driver, a contractor or just a small business owner, don't take the chance of having a minor catastrophe turn into a major one. Check with Litaker Insurance to be sure you have the right coverage to keep your business up and running.

For any auto insurance questions, call or contact Litaker Insurance today.