Understanding why you need auto insurance on your personal vehicle is easy. You want to protect your loved ones and your property and also it is required by law in most states. Knowing when you need commercial insurance is a completely different matter. There are certain types of vehicle usage that are not covered under a personal auto policy. If you own a business and use a vehicle solely for the business then you need commercial vehicle insurance. Also, if your vehicle has commercial tags on it you should get a commercial policy for it. If you do not insure your business the same way you insure your house, then why insure your business vehicles the same way you insure your personal auto.

Here are just some of the things you need to look at before deciding what type of insurance you need on your vehicle:

Registration: The first factor you need to look at is under whose name the vehicle is registered. When the vehicle is registered in the name of the business then you definitely need commercial auto insurance. If the vehicle is registered in your name, it does not automatically mean that you should get personal auto insurance on it. A lot of times a solely owned business will have a vehicle registered in the name of the owner. If the vehicle is being used primarily for the business though, you will need commercial insurance.

Who drives?: Another sign that you need a commercial auto insurance policy is if other employees at your company are driving the car. Commercial insurance policies allow you to list employees as drivers so that the insurance company can properly underwrite the risk on the vehicle.

Business Use: The next question you need to ask yourself is, “Is the vehicle getting regular business use?” A vehicle getting regular business use is defined as one that is used for commercial purposes, on average, more than 3 times in a 1 month period. If your answer is “Yes,” then commercial insurance is right for you.

• What is Business Use?: Before we discuss what constitutes business use lets talk about what business use isn’t. Only driving to and from your principal place of work is considered commuting and does not need a commercial insurance policy. This is covered under a standard personal auto policy. If you use the same vehicle to then travel to clients or job sites, depending on how often you do this and the nature of your work, you might need commercial insurance. Also if you do any of the following, get a quote for commercial vehicle insurance and properly protect you and your business.
• Carrying Equipment (ladders, supplies, tools, etc)
• Carrying Hazardous (or flammable) material
• Carrying Housekeeping Equipment for a business
• Equipped with cranes, winches, snowplows (not for use on private property only)
• Towing for Hire
• Delivery of Goods (including but no restricted to pizza, flowers, wholesale, retail)
• Rural Newspaper Delivery
• Trucking – Local and long haul
• Messenger, deliverer, chauffer
• Taxi driver

Policy Add-ons: If you need one of the following additions to your auto policy then your needs are probably best met by a commercial policy:

• Coverage for a third party as an additional insured.
• Waiver of subrogation.
• Liability coverage for hired or non-owned vehicles.
• Liability coverage for mobile equipment.

Acceptable Business Usage: Not all business use requires a commercial insurance policy. Some forms of business use are covered by a personal auto policy. Still, let your insurance agent know about these so they can tailor the policy to better protect you. These are a few of the business uses that are covered under your personal auto policy.

• A Mary Kay or Tupperware type of business is covered, as long as it is not your primary occupation. If this type of business is your full time job or mileage is excessive (more than 100 miles/day, 500 miles/week), use stops being incidental and therefore you should look into a commercial auto policy.
• Real estate agents, lawyers, accountants, clergy, doctors, and consultants that carry clients on a regular basis may do so under a personal auto policy.
• Home health care and social workers’ vehicles can be covered under a personal auto policy, provided that they do not regularly transport people.

If you are still not sure whether you need commercial auto insurance, call GEICO at 1-866-509-9444 or get a commercial auto insurance quote online.

Please Note: The above-listed tips are for informational use only. Refer to your insurance policy contract for specific information regarding your coverages and for actual terms, conditions and exclusions. The above statements are general in nature and may or may not reflect the actual terms of your insurance policy.

Coverage is underwritten by Government Employees Insurance Company and in some cases coverage is provided through GEICO Insurance Agency, Inc., which has made an arrangement with National Indemnity Company (NICO), a Berkshire Hathaway affiliate. Some discounts, coverages, payment plans and features are not available in all states or in all GEICO companies. See geico.com for more details. Government Employees Insurance Co. is a subsidiary of Berkshire Hathaway Inc. GEICO: Washington DC 20076. © 2009 GEICO

Whether your small business has a fleet of vehicles or you simply drive your own car for business, it's important to be adequately insured. For a sole proprietorship, a personal automobile policy may be enough, but inadequate coverage can put you and your business at risk. Here are some questions to answer when analyzing your needs:

1. How often do you drive your car for business? If you only use your car occasionally for business, your personal policy may be adequate, but if you use it frequently, consider a business upgrade on your personal policy.
2. Who is driving your car or your fleet? If your vehicles are used primarily for business and your employees drive them, a commercial auto policy is necessary.
3. Do employees drive their own cars for your business? If so, you may want to add a separate rider to protect your company from legal damages incurred from accidents.

When it comes insuring vehicles for your business, there is no one-size-fits-all advice; every company's needs are different. The following steps will guide you through the process:

Action Steps
The best contacts and resources to help you get it done

Understand the basics

Insuring a work vehicle is like insuring a personal one - you need liability coverage for bodily injury and property damage to others, plus protection that provides payments for medical costs and personal injury for the driver and passengers. Several online resources can help you learn the terminology, compare different types of insurances, and save money.

I recommend: The Insurance Information Institute, a trade group, offers a primer on everything from finding the right agent to saving money on policies. The National Association of Insurance Commissioners provides an overview of types of insurances that small businesses need.

Go through a broker or get bids online

Buying commercial auto insurance can be complicated and expensive. It is always a good idea to speak with a professional when determining your needs. A good starting point is with the agent who currently handles your business insurance; you can often get discounts of up to 20% by purchasing multiple insurance lines from the same agent. But plenty of insurance companies also vie for your business online.

I recommend: Insurance Noodle specializes in policies for small business. Or try these sites for online quotes: NetQuote, InsuranceQuoteOnline, MostChoice and USInsuranceOnline.

Take steps to lower your costs

Some cars cost less than others to insure. Also, employing workers who have clean driving records can help to reduce costs.

I recommend: Check the driving records of employees using vehicles for your business. Federal law allows screening of drivers' records for business purposes; it's a good idea to get employees' consent before checking them. Records are typically available from state motor vehicle departments. Several companies, including 4SafeDrivers.com, will do the searches for a fee. Some companies are going so far as to administer drug tests to assure their employees are fit for the road. Insure.com provides safety information and repair costs on a wide variety of vehicles, helping you to gauge how expensive a car will be to insure.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Be sure you name your company on your policy rather than yourself.
• •  Automobile policies cover physical damage to the car, but not the contents. Get additional coverage if you travel with valuable materials.
• •  Don't downplay your car usage for business when discussing your car insurance needs with your agent. You could ultimately be denied coverage in the event of an accident.

Making the most of commercial vehicle insurance requires covering yourself and your business properly. You work too hard to have a lawsuit ruin your business. For many, your business travel can take you through other states. Keeping yourself on the right side of the law can be tricky with the different state insurance laws.

In addition to keeping you legal, providers of commercial vehicle insurance offer your business protection from other types of losses. For example, you can opt for coverages such as comprehensive and collision, which repair or replace your vehicle in the event of a loss.

Consider other ways to better cover you business by doing the following:

1. Know what types of coverage you need from commercial auto insurers.

2. Get an insurance quote on a commercial vehicle designed for your industry.

3. Look to your commercial auto insurer for an umbrella policy.

Action Steps
The best contacts and resources to help you get it done

Know how much commercial auto insurance the law requires

By knowing how much insurance you're required to have, this information can help you determine how much and what kinds of coverage you should have. For example, if the liability requirements in your state are low, such as 10/20/10, you should strongly consider getting uninsured and underinsured motorist coverage to help protect yourself and your employees. This can also help keep you legal if you operate in more than one state.

I recommend: The Insurance Information Institute lists all the states and their compulsory requirements. There are also updates on the website as states make adjustments to their coverage requirements. A questionnaire on MSN Money evaluates your business situation and offers suggestions for appropriate coverage for your business vehicles.

Get commercial vehicle insurance quotes from insurance specialists

Some insurance companies specialize in giving commercial auto insurance quotes for specific industries. These companies make recommendations according to the industry. For example, over-the-road truck drivers have different needs compared to local delivery drivers.

I recommend: Look into insurance tailored to your line of business through Progressive Insurance. Farmers Insurance allows you to specify your line of business and shows you types of coverage you should consider for your business.

Consider a personal umbrella to supplement your business vehicle insurance

You might find it advantageous to supplement the commercial insurance for your vehicle with an umbrella policy. This insurance protects your business from additional needs that typical auto insurance policies don't cover, such as slander and libel, and provide higher coverage amounts in the event of a lawsuit.

I recommend: Look to ezumbrella from Preferred Concepts for business umbrella policies from $5 million to $25 million. Safeco explains the basic coverage required for your policies and offers a place to request an online quote.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Your commercial vehicle insurance quote may require PIP (personal injury protection) or no-fault insurance. As the name implies, this type of insurance is primary no matter who is at fault in an accident, paying the medical expenses for individuals in your vehicle.

Selecting the right commercial vehicle insurance can be a complex process. Auto insurance may seem like just an expense, but when you need to file a claim, you will be happy to have it available to you. Before you select an insurance provider, it is important to know a few commercial vehicle insurance terms commonly found on quotes and policies. Terms like bodily injury liability coverage, hired automobile coverage and new vehicle replacement cost coverage are often found on policies. Learn more about what these and other terms mean.

Action Steps
The best contacts and resources to help you get it done

Single deductible endorsement

Single deductible endorsement provides insured individuals with protection in cases where an accident may involve multiple deductibles. It can help the insured avoid paying toward multiple deductibles for a single accident.

I recommend: Progressive Commercial provides a full explanation of the single deductible endorsement.

Bodily injury liability coverage

In a commercial auto insurance policy, bodily injury liability coverage is a staple. This coverage pays for any costs associated with an accident to a person, including injury or death.

I recommend: CarInsurance offers more details about bodily injury liability coverage, while providing a thorough look at commercial auto insurance.

New vehicle replacement cost coverage

A type of commercial coverage many businesses will benefit from is new vehicle replacement cost coverage. Having this type of coverage will pay to replace the vehicle if there is an accident in which the vehicle is a total loss.

I recommend: Erie Indemnity provides more information about new vehicle replacement cost coverage.

Hired automobile coverage

Hired auto coverage is either supplemental or replacement coverage on rented vehicles. It does not cover physical damage. It only protects the employee driving the vehicle.

I recommend: TechInsurance provides more details on hired auto coverage and non-owned automobile coverage, which is similar.

Liability insurance, business liability, commercial general liability

Liability insurance for a business protects business assets should the business be sued. It pays the cost of damages, legal fees and other costs associated with the lawsuit filed against a business.

I recommend: AllBusiness provides more information on liability insurance for commercial automobiles.

Loading and unloading coverage

Loading and unloading coverage provides protection to the commercial vehicle owner when there is damage or an accident during the loading or unloading process.

I recommend: The American Educational Institute gives more details on loading and unloading coverage, including examples of its effects.