Man carrying package out of delivery van

What is Business Car Insurance and When Do You Need It?

A popular question among small business owners and drivers who use their vehicles for some form of commercial use is when a business car insurance policy (also known as a commercial auto insurance policy) is necessary. Below are some general guidelines to help you determine if a commercial policy is right for you.

Car Insurance for Business Owners

Vehicles registered in the name of the business need commercial automobile insurance. We offer business insurance for small auto fleets of light- and medium-weight trucks, service vans, and private passenger vehicles.

Commercial vehicle insurance may also be necessary for a business with vehicles registered in the owner’s name depending on usage. Generally, commercial car insurance is needed for vehicles used primarily in business tasks.

Measuring Business Usage

A vehicle used for commercial purposes more than a few times per month may need a commercial automobile insurance policy. For a more accurate answer based on your unique needs, find a local agent who can walk you through your options and offer a business auto insurance quote.

Common examples of business operators and other professionals who can benefit from a commercial vehicle insurance policy include trade contractors, off-premises caterers, local delivery service providers, and funeral directors. Other commercial uses will be considered.

Commercial policies through Plymouth Rock are generally grouped into the following classes:

  • Retail Use: Vehicles used to pick up property from or deliver property to individual households.
  • Service Use: Vehicles used to carry tools, supplies, or supervisory personnel to or from a jobsite, while remaining parked at three or fewer jobsites for most of the workday.
  • Commercial Use: Vehicles used to transport property outside of the retail use and service use categories.

Business Usage Exceptions

Commuting usually does not require a commercial vehicle insurance policy. If you use your personal vehicle for a secondary occupation (e.g., a real estate agent), you may be covered under your personal auto policy.

Although these cases may not require you to seek business auto insurance quotes, you should let your insurance company know of your driving habits to make sure you are adequately protected. Read about business insurance coverage options and comparing commercial and personal auto insurance to find out more details.

Call 866-233-9807 or find a local independent agent through Plymouth Rock to learn more about what business car insurance is in New Jersey.  If you need additional information it can be found on our Contact Us page.