If you use a car, pickup or van for your business, your personal auto policy may not cover you when something goes wrong. Commercial auto insurance in California protects business owners, contractors and drivers who depend on their vehicles to earn a living.
Personal vs. Commercial Auto Insurance
Personal auto policies are designed for commuting and everyday errands. Many of them exclude or limit coverage when a vehicle is used for business, such as carrying tools, transporting goods, visiting job sites or making deliveries. If you have an accident while working, your claim could be denied.
Who Needs Commercial Auto Insurance?
- Contractors, landscapers, plumbers and electricians with work trucks.
- Businesses whose employees drive company vehicles.
- Delivery and courier services.
- Cleaning, maintenance and mobile service companies.
- Businesses whose vehicles are titled in the company’s name.
What Commercial Auto Insurance Covers
- Liability: injuries and property damage your business vehicle causes to others.
- Collision and comprehensive: damage to your vehicle.
- Medical payments: for drivers and passengers.
- Uninsured/underinsured motorist.
- Hired and non-owned auto: when you or your employees use rented or personal vehicles for business.
Why Limits Matter More for Businesses
A serious accident involving a business vehicle can lead to lawsuits against the company. Higher liability limits protect your business assets and are often required by clients or contracts.
Pair It with Workers’ Compensation
Commercial auto covers the vehicle and third parties; injuries to your employees on the job are generally handled by workers’ compensation. Together they close important gaps.