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Do You Need Commercial Auto Insurance?
Do you drive a vehicle for work? Do you own a business that owns or leases vehicles? If part of your business requires you or your employees to get behind the wheel, you might need a commercial auto insurance policy. Here is an overview of commercial auto insurance, as well as a checklist of questions to ask to determine which type of car insurance you should buy.
We are here to assist with any commercial auto insurance quotes/questions at 1 (855) 482-5001.
What Does Commercial Auto Insurance Cover?
Whether you run a solo business with a single delivery truck, or you operate a large company that uses dozens of vehicles, it’s important to make sure you’re covered in case of a car accident. You should also consider commercial auto insurance if your employees use their personal vehicles to perform tasks on behalf of your business.
In short, commercial auto insurance covers you in cases where your personal car insurance doesn’t. You may also hear commercial auto insurance referred to as “fleet insurance” or “commercial fleet” coverage. If you transport products or goods in a vehicle, you may also need commercial auto insurance that covers your cargo.
The types of vehicles that require commercial auto coverage include delivery trucks, vans, box trucks, service utility vehicles and food trucks. These are just a few examples. Additionally, a standard car can also be a commercial vehicle if it’s used for business purposes.
In some cases, a business owner only needs commercial auto insurance for a single vehicle. However, you can also purchase fleet insurance that covers all of your business’s vehicles under a single policy.
You can tailor commercial auto insurance to your business’s specific needs. Coverage options include:
- Bodily Injury Liability Insurance
Bodily injury liability coverage pays for any physical injuries or fatalities in an accident in which you are at fault. If an injury victim or surviving family member files a claim against you in court, this coverage will also cover your defence and court costs.
- Property Damage Liability Insurance
Property damage liability coverage pays for any property damage you cause in an accident in which you’re at fault. As with bodily injury coverage, property damage liability insurance will cover your defence and court fees if you’re sued following a car accident.
- Accident Benefits/Medical Costs
This insurance will pay for your medical expenses if you’re hurt in a car accident. It will also cover employees or passengers injured in your vehicle during a crash.
- Collision Insurance
Collision coverage applies in the event your vehicle is damaged by another person in an accident.
- Uninsured/Underinsured Motorist Insurance
As the name indicates, uninsured/underinsured motorist insurance covers you in accidents caused by a driver with no insurance or inadequate insurance. Although car insurance is mandatory in all Canadian provinces, some motorists still choose to drive without the minimum required coverage. Uninsured/underinsured coverage ensures you’re protected against this type of driver.
- Comprehensive Coverage
A comprehensive policy covers you in the event your vehicle is stolen or damaged by vandalism, theft or a non-accident situation.
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Checklist: Do You Need Commercial Auto Insurance?
In some cases, it’s easy to know when you need a commercial auto insurance policy. However, the line between personal car insurance and a commercial auto policy isn’t always clearcut. To help you determine which type of car insurance is appropriate for you, ask yourself the following:
- Do you use your vehicle to transport products, goods or people in exchange for payment?
- Are you self-employed?
- Do you use your vehicle to deliver a service?
- Is a vehicle titled in your business’s name?
- Does an employee use your vehicle as part of his or her job?
- Do any of your workers conduct company business while driving their personal vehicles?
- Do you transport tools or a towing trailer as part of your work?
- Do you move goods, cargo or freight as part of your business?
- Does your vehicle exceed 10,000 pounds? Does it have a load capacity above 2,000 pounds?
- Do you lease or rent your vehicle to another person or entity?
- Is your vehicle outfitted with equipment, such as ladders, snow plows, landscaping machinery, hydraulic lifts or tools?
If you answered “yes” to any of these questions, you probably need a commercial auto insurance policy.
Still Unsure If You Need Commercial Auto Insurance?
If you’re thinking about a commercial auto insurance policy, it’s also a good idea to review your personal car insurance coverage. Whatever you do, don’t assume your personal car insurance will cover you.
No one wants to be surprised to learn that their personal policy doesn’t apply after an accident has occurred. Whether you’re a neighbourhood handyman, a one-person catering shop or a nanny who uses her own car to drive children to sports practice, you want the peace of mind of knowing you’re covered.
As a first step, check to see if your personal car insurance policy lists exclusions or limits for accidents that involve a business. Personal car insurance policies aren’t designed to cover accidents that involve a business or business owner, and most insurers are quite specific about what their policies do and don’t cover. If you’re in doubt as to whether you need a commercial auto policy, get clarification from your insurance company.
Commercial Auto Insurance for Uber Drivers
If you drive a livery vehicle, limousine or other type of vehicle that transports passengers for a fee, you probably need a commercial auto insurance policy. If you drive for Uber in Ontario, however, you are automatically covered by Intact Insurance through Uber.
My Insurance Broker and Intact provide Uber drivers with commercial auto insurance at no cost. Uber’s ridesharing insurance coverage through Intact provides drivers with the following coverage:
- Third Party Liability Coverage
Intact provides $2 million of third party liability coverage that covers a driver’s liability to individuals injured in an accident. This coverage only applies when an Uber driver has accepted a trip.
- Statutory Ontario Accident Benefits
Intact will pay for Statutory Ontario Accident Benefits.
- Uninsured Automobile Coverage
Uber drivers also receive $2 million in uninsured automobile coverage.
- Direct Compensation - Property Damage Coverage
Intact will pay for repairs to a driver’s vehicle in cases where the Uber driver is not wholly at fault.
- Contingent Collision and Comprehensive
This insurance covers loss or physical damage to an Uber driver’s vehicle up to the actual cash value of the vehicle. The driver is responsible for a $1,000 deductible, and the coverage is only available when the Uber driver also maintains collision and comprehensive coverage on his or her personal auto insurance policy.
- Coverage Between Trips
Uber drivers receive $1 million of third party liability and uninsured automobile coverage when they are available through the Uber app but have not yet accepted a ride.
Uber’s Intact policy extends coverage for Uber, Uber X, Uber XL, Uber Select, Uber Hop and Uber Pool. However, Uber’s commercial auto insurance through Intact does not extend to UberEATS. If you drive for UberEATS only, and you don’t concurrently drive for another Uber service, you must obtain your own commercial auto insurance policy.
Although the Intact insurance gives Uber drivers the important auto insurance they need, many Uber drivers choose to pay for additional coverage to minimize their risk of personal liability in the event of an accident. If you drive for Uber, visit our Uber Insurance page to learn more about your options.
You can also use our online car insurance calculator to get a two-minute quote for Uber driver insurance
Get a Quote on Commercial Auto Insurance Now
You have a lot of options for purchasing commercial auto insurance. However, most these options limit you to quotes from just a few insurers — and, in the case of an insurance agent, maybe just one.
This is why most business owners choose to work with an insurance broker like My Insurance Broker. Here’s why we’re the obvious choice:
- Access to the Best Insurance Coverage
At My Insurance Broker, we offer commercial auto insurance policies from Canada’s top commercial insurance companies. This allows you to make an informed choice, and to find the most comprehensive and affordable commercial auto insurance for your business.
- Save Money for Your Business
Because we are an insurance brokers, we offer you a variety of commercial auto insurance options. You can find coverage that suits your needs and meets your budget. A commercial auto policy protects your business from the high costs associated with car accidents.
- Superior Customer Care and Service
Everyone on our team is committed to delivering the best customer care and service in the business. We will work with you to find commercial auto insurance coverage you can count on.
Ready to see what commercial auto insurance package is right for you? We offer a number of carriers that make it easy to find the commercial auto insurance coverage you need. Call us to get your commercial auto insurance quote 1 (855) 482-5001.
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