Commercial Auto Insurance – California

For some reason, many small business owners don’t realize that if they use a vehicle for their business needs it is very important that they obtain commercial auto insurance. California is has specific laws dealing with commercial auto insurance. personal auto insurance.

One thing that is important to remember is the difference between personal and commercial auto insurance. California insurance code section 675-679.7 clearly states that personal insurance policies can not be used to reimburse loss or damage resulting to property used “in the conduct of a commercial or industrial enterprise.” In fact, a business owner that insures commercial vehicles under a personal auto insurance policy may be guilty of false representation under the laws of California as well as under other states’ laws. It is serious business.

Fortunately, there are plenty of options available in California for commercial automobile insurance. Whether you’re a corporation insuring a fleet of vehicles or a small business owner with one vehicle to insure, you can find a commercial insurer with a plan that will suit your needs.

Most of the auto insurance companies that are able to cover personal vehicles can also write and sell policies for businesses and commercial interests. For information on using your personal insurance company to insure your business vehicles, talk to your insurance agent. The agent will undoubtedly be able to offer a number of different options to suit your commercial auto insurance needs.

Some business owners shun the idea of obtaining commercial auto insurance because they fear it will be too costly. The truth is that, just like in personal car insurance, commercial auto insurance rates may vary based on factors about the business being insured. If the commercial vehicle is on the road very often (as in the case of a delivery truck, for example, where the very nature of the business involves driving) then the rates for auto insurance are likely to be higher. No insurance company could possibly charge your business an auto insurance premium that will be more costly than the fines, fees, penalties, and even criminal charges that can result from improperly representing a commercial vehicle as a personal one on an insurance policy, however. The fees for not carrying auto insurance at all are also very high.

With so many companies competing for your business, locating a good commercial auto insurance policy for your company vehicles needn’t be difficult, time consuming, or overly expensive. Given the alternatives, it would be prudent to obtain commercial auto insurance today if you haven’t done so already.