Solvang Auto Insurance Agent Reports Top Reasons for Commercial Auto Insurance

-Commercial auto insurance covers more than delivery vans and tool trucks and it is important to ensure that vehicles used for commercial purposes are properly insured. Small business owners, in particular, may be tempted to save money by using their personal vehicle for business and not telling the insurance company, but the risk can quickly outweigh the savings, reports Rick Torres, State Farm insurance agent.

Although personal vehicle and commercial vehicle insurance covers accidents, bodily injury and property damage, there are some important differences:

  • Commercial vehicle insurance covers vehicles used exclusively for business purposes such as delivering goods, driving to customer sites, performing certain transportation services for a fee, and other utility-related uses. company. Commercial vehicle insurance also covers licensed employees who are authorized to drive company vehicles.
  • Personal vehicle insurance only covers accidents while driving for personal purposes, including commuting. Due to the increased risk of business use, most personal vehicle policies exclude business use and if there is an accident while driving for a business related matter, the claim is most likely denied.

Solvang Motor Insurance Agent reminds business owners that the nature of professional driving, which may include carrying passengers, a wide variety of goods, valuable tools and supplies, etc., increases the risk of loss. It’s reasonable to expect commercial business insurance to be a bit more expensive than personal vehicle insurance, but the cost may not be as high as expected.

  • Liability covers personal injury or property damage and bodily injury and medical expense coverage helps pay for personal injury and funeral expenses
  • Comprehensive coverage helps repair or replace a covered vehicle that is damaged or lost due to something other than a traffic accident
  • Collision insurance helps pay for a damaged vehicle
  • Uninsured and underinsured motorist coverage helps pay for medical expenses and property damage when the other driver is uninsured or underinsured

Although commercial vehicle insurance is very similar to personal vehicle insurance, there are a number of differences. Commercial vehicles typically travel far more miles per year than a personal vehicle, increasing the risk of a traffic accident. Commercial vehicles can carry paying passengers who could be injured in an accident. Commercial vehicles enter and exit a variety of parking lots, delivery bays, and often park in street delivery areas, increasing the risk of dents, scrapes, and other damage.

Investing in commercial vehicles is an investment in the business and it is important to protect all business assets. Even a small fender can have an impact. The damaged vehicle must be out of service for repairs, there may be expenses to rent another vehicle for deliveries or critical business appointments, or the vehicle may need to be replaced.

Commercial auto coverage covers a wide range of vehicles: cars, trucks, vans, farm vehicles and more. State Farm offers a wide range of coverage options for commercial vehicles. One of the best business decisions is to schedule an appointment with an auto insurance agent at Solvang’s Rick Torres State Farm Insurance Agency and discuss all of the insurance needs of the business, including vehicle coverage.

Rick Torres has been serving the insurance needs of Central Coast California businesses, individuals and families since 2002. Born and raised on the Central Coast, Torres graduated from Cal Poly San Luis Obispo with a degree in Business Administration and served on the Solvang and Buellton Chamber of Commerce, coached young athletes and supported various community causes.

Torres and his team are always ready to discuss any insurance needs and offer the best possible insurance solutions.

Rick Torres Insurance Agent
540 Alisal Road, Suite 4
Solvang, California 93463
(805) 688-5418

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