Do You Need Commercial Car Insurance?

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Do you use your personal vehicle for work? If so, you may benefit from having commercial auto insurance. Businesses often have unique liability risks, and these are reflected in commercial car insurance policies.

What does commercial car insurance cover?

Every policy is different, but most include the following features:


  • Injury coverage for you, your employees and passengers. This includes compensation for medical expenses and lost wages.


  • Loading and unloading liability. This is important for businesses that transport merchandise or equipment.


  • Replacement car coverage. This covers the cost, or part of the cost when you’re involved in an accident and need a temporary rental car.


Do you need commercial auto insurance?

Based on the standard coverage options listed above, you may already have a good idea of whether or not you require commercial auto insurance. However, if you have lingering doubts, ask yourself the following three questions.


  1. Who drives the vehicle? If your employees regularly drive the vehicle, it’s important to get commercial car insurance and to list your employees as drivers. This allows your insurer to properly calculate the amount of risk on the vehicle.


  1. What’s the vehicle used for? Your vehicle should be insured under a commercial policy if it’s used to transport merchandise, equipment or customers.


If, for example, you have an HVAC company and use a van to make service calls, you need commercial auto insurance to cover against damage to the heavy equipment you’re transporting as well as injuries sustained by you or your employees when driving or loading and unloading equipment.


If, on the other hand, you work as a real estate agent and use your vehicle to drive from house to house, your personal auto insurance policy will likely provide sufficient coverage.


  1. What type of vehicle is it? Sometimes the critical factor is the type of vehicle you drive. Commercial vehicles such as trucks and trailers tend to cause more damage in accidents than ordinary vehicles. As a result, you may need more extensive coverage beyond that which is included in your personal car insurance policy.


Are you still unsure about whether you need commercial car insurance? If so, speak to an insurance expert to determine your auto insurance needs.


Commercial auto insurance in Alberta

Are you looking for an affordable commercial auto insurance policy in Alberta? Then reach out to the brokers at TSG Insurance. We can also help you get cheap car insurance that provides you with the protection you need. To make an appointment with one of our brokers (our Alberta offices are in Calgary, Edmonton, Medicine Hat, Brooks and Bassano), or to get a free quote, contact us today!