Everyone knows that a vehicle needs insurance coverage. However, not everyone realizes that using a personal vehicle for business purposes may require commercial auto insurance. If a vehicle is used for business and that use is excluded under a personal auto policy, an insurance claim could be denied.

Speaking with your agent at Spring Grove Insurance serving Spring Grove, IL, is the best way to ensure your auto insurance properly reflects how your vehicle is used.

When Commercial Auto Insurance May Be Required

Certain types of vehicle use may trigger the need for commercial auto insurance, depending on the terms of your personal auto policy:

• Making deliveries
• Transporting tools or equipment to job sites
• Carrying paying passengers
• Using your vehicle for rideshare services
• Providing mobile services such as repairs or pet grooming
• Transporting employees for work-related purposes
• Running business-related errands
• Visiting multiple business locations
• Advertising a business with signage, decals, or vehicle wraps
• Driving to meet clients or customers
• Traveling long distances for business purposes
• Transporting hazardous materials

In some cases, even simple errands, such as picking up food for a company event, may be considered business use of a vehicle.

Vehicle Ownership and Commercial Coverage

If a vehicle is owned or titled in the name of a business, commercial auto insurance is typically required, regardless of how frequently the vehicle is used.

Small business owners should be especially aware of this requirement. Even if a vehicle is rarely used for business activities, commercial auto insurance is necessary when the business owns or leases the vehicle.

Commercial auto insurance may also be required when a business operates multiple vehicles, maintains a fleet, or allows employees to use shared company vehicles.

Work with your agent at Spring Grove Insurance serving Spring Grove, IL, to review your vehicle usage and ensure you have the appropriate auto insurance coverage.