The distinction between insuring your vehicle for work under commercial or personal insurance may seem small; however, the more you examine them, the more they differ.
It is why it’s crucial to be aware of the distinctions between these policies. It will enable you to get the appropriate coverage to safeguard your assets.
What are the differences between commercial and personal auto insurance?
Insurance for personal vehicles is available to individuals. It covers the type of use for the car, but it does not wrap when the car gets used to earn rewards. Contrarily, commercial or business insurance covers vehicles that get used to:
- Moving equipment or goods
- Staff or clients driving or even visiting your customers
- Giving service in exchange for you get compensated
- Paying passengers a fee each time they ride in your car
- Charges for transporting products within your vehicle
- Moving heavy, work-related load
- Towing a trailer to transport business
The most common commercial vehicles are vans, sedans, utes, trucks, forklifts, pet grooming tractors, trailers, and ride-on mowers.
Commercial vehicle insurance covers all aspects of the business. In contrast, an individual policy covers you as the driver of your vehicle and any other designated drivers, like your children or spouse.
Why Is Commercial Insurance More Expensive?
Commercial vehicle insurance generally offers a greater claim limit and additional insurance coverages not provided for policyholders with personal vehicle insurance. They are more likely to be used frequently and often in heavy traffic, various routes, and poor conditions. Of course, more significant risks get associated with commercial vehicles working on the road or the site.
There’s no reason to be surprised that premiums will be higher regarding commercial and personal car insurance; however, the cost will differ based on vehicle use. Here’s the reason why premiums can vary:
- The risks for your industry
- The type and number of vehicles you own for your company
- How often do they get driven
- The driving records of your employees
- The coverage you choose and the policy’s limits
- Your history of claims for auto insurance
What Should My Insurance Policy Cover for Commercial Vehicles?
We assume you’ve secured the compulsory third-party/green slip insurance, the mandatory insurance required for driving across roads.
It is possible to purchase commercial vehicle insurance as part of your company insurance plan or as a stand-alone option for a set of vehicles, typically up to 20 in one policy. You don’t have to purchase an additional approach to cover every car. It’s quite an efficiency saver! In addition, you can select automatic inclusions and deletions to include new vehicles when they are purchased and to get rid of ones you’ve sold in the policy’s time.
Here’s what you should ensure is part of your commercial vehicle’s policy:
- Legal responsibility if your car causes harm to another
- The damage that drivers who are not insured cause to your vehicle
- Theft or fire in your vehicle
- Repairer of choice
- On repairs that the insurer authorizes, there is a lifetime guarantee.
- An easy and quick claims process
- The option of paying monthly, quarterly, or even annually and also
- Other options include replacement vehicles for new vehicles and rental vehicles. At the same time, your own is unavailable due to accidents, lease payments, and windscreen excess.
Commercial vehicle insurance gets designed to assist your company in reaching its vehicle to the roads following an accident. We can help you understand the possibilities to tailor the most appropriate cover.
Contact Commercial Insurance Ottawa today about the renewal or new insurance requirements. We assist you in finding the insurance that best suits your company’s needs. Contact us at (613) 454-5640 or mail at info@commercialinsuranceottawa.com.