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  • Writer's pictureCooke Insurance

How Do You Know If You Need Commercial Auto Insurance

Updated: Apr 27, 2023

Getting auto insurance is essential as you never really know what could happen to your vehicle when driving. But before you sign up for one, you have to ensure you're getting the right type of insurance for your vehicle. For example, you may think personal auto insurance will be adequate for a car you'll be using for your business. But in reality, certain scenarios require you to get commercial auto insurance instead.


You're a Sole Proprietor Owning and Operating the Vehicle


If you are the sole proprietor of a business using your vehicle as part of your work, you need to get commercial auto insurance. This is because your personal auto insurance may not cover business-related use. The policy's liability, collision and comprehensive may not be enough to cover the damages you may cause to third parties or to your car. You may also need to purchase an additional business policy to cover damages to your vehicle.


You're Using Your Car to Transport Commercial Goods


You need a commercial auto insurance policy if you're transporting and selling goods for your business. This is because your personal auto insurance policy might not cover the damages done to the goods. Your policy will most likely cover vehicles you're driving for personal use, like taking your family to the beach. But if you're transporting and selling goods for your business, you'll need commercial auto insurance.


You're a Sole Proprietor Using Your Car to Drive Your Employees


If you are a sole proprietor, you need commercial auto insurance if you're using your car to pick up and drop off your employees. Your personal auto insurance may cover damage, loss or liability of your employees, but it may not cover special situations. For example, damage to the car's windshield caused by stones thrown by one of your employees. You'll need to get a commercial auto insurance policy to cover these damages.


You Own a Big and Heavy Vehicle


You need commercial auto insurance if you own a large or heavy vehicle. Your personal auto insurance may not be enough to cover the damages or injuries you may cause to others. For example, you may have extra insurance coverage to pay if you accidentally damage another person's property. But this will be impossible if you have a heavy truck or a large van. You need commercial auto insurance to cover damages you may cause to other people's properties.


You Rent Out Your Vehicle


You must get commercial auto insurance if you're renting out your car to other people. Your personal auto insurance will only cover the damages incurred by you, the owner. It won't cover the damages to the rental car because the rental agreement is between the renter and the insured.


Final Thoughts


Getting the right auto insurance is essential. Be sure to get the right type of insurance for your vehicle, whether it's personal or commercial. You should also consult with your insurance company and ask questions before purchasing a policy. You'll want to get the right insurance to cover your vehicle's specific purpose.

Get commercial auto insurance in Saskatoon from Cooke Insurance. Established in 1979, Cooke Insurance is a three-generation general insurance broker and SGI Motor Licence Issuer providing personal, commercial and specialty insurance services. Get in touch with us today!

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