Can You Insure a Commercial Vehicle Privately?

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In some situations, if you frequently use a business vehicle for personal reasons and can prove a good cause, your insurance provider will arrange for you to purchase private insurance coverage. However, if you mostly use a vehicle for your business, you need to insure it as a commercial vehicle.

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For example, let’s suppose you buy a car to use mainly in your business. This might be a delivery van, a truck you plan to use to drive to project sites, or a vehicle in which you will transport clients. In that case, according to Simplex Group, you should protect that vehicle with a commercial auto insurance policy.

You also need commercial auto insurance if you use your vehicle to transport products or people for a charge. You also need it if you provide a service, such as if you have a mobile pet cleaning van. Commercial insurance is also necessary if you tote specific tools or use a truck for business. You should also obtain commercial auto insurance if your workers use a company vehicle for business purposes or even if they drive their own cars for business purposes.

Private or Commercial Insurance: What Is the Difference?

Private and commercial insurances have a couple of different factors that set them apart. The most important aspect is who owns the vehicle. If a business owns the vehicle, it must be covered by commercial auto insurance.

Private and commercial auto policies imply different legal expenses, property damage, and bodily injury claims related to auto accidents.

You Need Minimum Liability Coverage on a Commercial Vehicle

If you purchase a used commercial vehicle for personal use, you must get at least the minimum liability coverage of private use truck insurance.

However, the application process for insuring a commercial truck for personal use is the same as it is for insuring a truck or car for personal use. In other words, you will find the process familiar and simple.

Moreover, depending on your situation and who your current provider is, you may be able to add your business truck to your personal auto insurance policy.

Commercial vehicles are great assets for a corporation. However, when a truck becomes too old, has too many miles, or you no longer need it for business purposes, you can sell it to a private party for their personal use.

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On the other hand, if you buy a commercial truck for personal use, you’ll need to start insuring it. This is the same as getting basic auto insurance for a personal vehicle. This must-have liability vehicle insurance coverage may also include comprehensive coverage, collision coverage, and other common forms of coverage.

The application form for commercial use truck insurance is the same as it is for any other motor vehicle. Depending on how you intend to use your new truck, however, you might require extra insurance.

What Qualifies As a Commercial Vehicle?

According to the IRS, many different types of commercial vehicles are used in various industries.

You might acquire a commercial vehicle that is brand new and ready to go. But you might choose to purchase a chassis cab that requires additional bodywork or equipment.

Some trucks, such as dump trucks or refrigerated trucks, are more difficult to repurpose for private use, but that is not impossible. For instance, you might have access to a tow truck that you use for personal purposes.

Regardless of how you use a particular vehicle, you will require some type of auto insurance coverage. A farmer, for example, might purchase a secondhand dump truck for personal use. In such a case, they will need dump truck insurance coverage.

Commercial trucks that are more frequently marketed for private use include:

Towing vehicles
Trucks for hire
Trucks with flatbeds
Vans for transporting goods

Conclusion

Turn to the suggestions in this article when you need to insure the cars and trucks you use in your business. Be sure to obtain the proper insurance at the correct level, whether you sometimes use a single commercial vehicle in your business or your company routinely relies on an entire fleet of trucks. The type of insurance you choose is an important part of your overall business strategy.

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