Many times, commercial auto insurance is discussed in terms of businesses. Several businesses offer commercial auto insurance for vehicles used or owned by work purposes. Large business owners aren’t the only ones who may need commercial auto insurance, however.
If you use your vehicle for work purposes, you may need commercial auto insurance.
What Does Commercial Auto Insurance Cover? 
A commercial auto insurance policy provides a lot of the same coverages as a personal auto insurance policy. However, this type of policy is geared specifically for vehicles that are used for work purposes. If you frequently deliver people, food or products or travel for work, you may qualify for a commercial auto insurance policy.
A full coverage commercial auto insurance policy may include:
- Comprehensive Coverage: Comprehensive coverage provides compensation for damages to the vehicle caused by wind, hail, lightning, fire, smoke, theft, vandalism and other incidents not involving collision.
- Collision Coverage: Collision coverage provides compensation for damages to your vehicle caused by a collision with another vehicle or object.
- Liability: Liability insurance covers bodily injury and property damage you may cause someone else while operating the insured vehicle.
- Medical Payments Coverage: Medical payments coverage provides compensation for you and your passengers’ medical bills after an accident, no matter who is at fault.
- Uninsured/Underinsured Motorist: This insurance covers expenses related to an accident with another driver not carrying insurance.
Some businesses may also choose to purchase Hired or Non-Owned Auto. This insurance covers vehicles that are used but not owned by the business. This can also be used for employee vehicles. If your employer covers your personal vehicle while using it for work, you may not need commercial auto insurance.
On the other hand, make sure that your employer does cover your vehicle. If you are working for a rideshare service, some services will only cover your vehicle as long as you are using the app or have a customer in your car. Otherwise, you could have gaps in your coverage and find yourself paying out of pocket for an accident. If you have questions about which policy you need, speak with your insurance agent.