Commercial Auto Insurance
Why Do I Need Commercial Auto Insurance?
You need commercial auto insurance for any automobile, taxi, van, limo, bus or small truck that you use for business because a personal auto policy will not cover your vehicles used for business.
Your commercial vehicle coverage will protect you and your business from the costs of property damage, injury and liability claims that you may incur in the use of your commercial vehicles.
For larger commercial vehicles such as tow trucks, cement trucks, construction vehicles, tractor trailers or semi-trucks, you will need a commercial truck insurance policy. Not only is your commercial vehicle policy critical for protecting your business financially, but it is required by law.
How Much Does Commercial Auto Insurance Cost?
The cost of auto insurance depends on a number of things including the size of your business, the types of vehicles and number of vehicles you need to insure, your risks, and the amount of coverage you need.
Generally, a passenger auto vehicle will cost much less than a heavy duty vehicle such as dump truck. However, insurance carriers also offer fleet insurance and these policies are typically available at a bulk discount
The cost of insurance also depends on the driving records of the drivers who will be using your commercial vehicles. Employees who have bad driving records will cost you more to insure, so it is always important to perform a driving record background check on prospective employees. Drivers who are between the ages of 30 and 65 are typically given better insurance rates.
Is Commercial Auto Insurance Tax Deductible?
Yes, your commercial auto coverage is tax deductible. There are many situations that allow you to deduct the cost of commercial auto insurance for tax purposes when you use your vehicle for commercial or business use.
If you are self-employed, you may be able to deduct your commercial auto insurance premium under Schedule C; if you are an employee and do not receive mileage or expense reimbursement, you can use Form 2106 (Employee Business Expenses). Your best bet is to contact the IRS or a tax advisor for clarification.
Does Commercial Auto Insurance Cover Personal Use?
Personal use will be covered for a company owned vehicle providing the company has commercial auto coverage. If you are driving your own vehicle to and from work without using your vehicle for commercial purposes then it would be covered under your personal auto policy.
If you are using your personal vehicle for occasionally for commercial purposes, you will either need to have sufficient liability coverage under your personal auto policy, or purchase commercial auto insurance. The best option will depend on the circumstances; if you are using your vehicle for any kind of business purpose, be sure to talk with your agent. The business may be required to get a non-owned business liability endorsement for these situations.
If you are interested in receiving a quote please fill out the form below and we will reach out shortly
Commercial Auto Insurance Quote
Commercial auto liability coverage protects your firm against third-party claims for bodily injury or property damage caused by an accident that results from the use of a covered auto. It also provides some coverage for pollution cleanup costs that stem from an auto accident.
Please fill out the form below and we’ll have an agent reach out to you as soon as possible. Thanks
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