Commercial car insurance plans understandably protect vehicles used for commercial purposes, such as fleet vehicles for a large company, trailers, lorries and other vehicles used in trade and other business activities. And they can be relatively affordable compared to similar personal car plans because many fleet vehicles are regularly maintained and their drivers must almost always pass driving tests and drug screening before they ever end up behind the wheel. And if they are involved in an accident, they still meet a drug screen to ensure that the driver is not impaired and random drug tests can also be administered to prevent drug and alcohol loss.
But what many people do not realize is that their vehicles may need to have increased protection for commercial car insurance, even if they have full coverage plans in place on their personal vehicles. In recent years, most car insurance companies have ruled out coverage when passenger cars are used for which insurance companies are considered commercial purposes. It includes everything from delivering newspapers or pizzas to taking a group of people in the Church on Sundays.
If you are involved in an accident while doing such activities, there is a great chance that a personal car insurance will not pay the costs and it can be a tragic event if the vehicle is financed, damaged heavily or end up in an accident or other accident. Its bad enough to pay a $ 500 or $ 1000 deductible on a funded vehicle. However, if a funded vehicle is damaged, total or stolen when conducting commercial activity, the insurer does not want to pay, but the lender may require immediate payment of the entire amount of debt. And it would be a financial collapse that everyone would assure everyone that the richest people get stuck and pay a big debt for a vehicle that no longer has that the finance company would recover it, sell it for what amount they could get and bill the borrower for the rest .
The reason that insurers will not cover accidents and other claims arising from commercial activity on vehicles that only have personal car insurance plans in place is due to the greatly increased risk of using a personal vehicle for commercial purposes. People may have to drive several times during the worst times, and it could mean a greatly increased chance of being involved in an accident or causing injury to one or more people. Personal car insurance plans apply only when commuting and using a vehicle for normal reasons, such as going to the store and back and forth to work.
If you are unsure of the need for commercial car insurance, you pay to contact an insurance provider and see if any of the uses can be classified as commercial use and potentially endanger the insurance cover if it is unfortunate or other failure that would otherwise have been covered by a personal auto plan. An insurer will gladly add a commercial or commercial rider to a personal plan to protect against the increased risk and liability arising from temporary business operations.