From ride sharing to delivering food and goods, transportation-based businesses have seen a surge in popularity around Cypress, TX. Putting your personal vehicle to run your own business can be a smart choice to earn income in an ever-changing convenience service industry. InsureUS knows one of the most important considerations to make when you start such a business is auto insurance coverage.
Even if your personal vehicle already has insurance, that policy is likely not adequate for commercial use. In fact, accidents that occur while you are using the vehicle for business might not be covered at all by your personal use policy. So, how can you decide if you need a commercial auto insurance policy?
Personal VS Business Usage
A vehicle is considered to be used commercially when a business requires it in order to maintain normal operations and/or it is used over 500 miles per week. How you use your vehicle also matters in determining if it is mostly personal or commercial.
- Commercial Examples – Regularly visiting clients or business properties, Hauling equipment to work sites, Delivering goods or paying customers, Selling goods or services out of the vehicle (i.e. a food truck or traveling cleaning service)
- Personal Examples – Regular commutes to work, Taking non-work trips with coworkers, Picking up lunch, Business use less than 3 times per month
Unique Opportunities, And Dangers
Using your vehicle to generate income can be exciting, but it can generate problems, too. Your vehicle will likely deteriorate in condition faster and is far more likely to encounter dangerous weather and accidents. These situations are just some reasons why commercial auto insurance offers special coverage for business vehicles.
Whether you’re using your personal vehicle to run your business or own a whole fleet of work cars and trucks, InsureUS encourages all of our Cypress, TX customers to reach out and discuss commercial auto insurance with us today.