Does Commercial Auto Insurance Cover Personal Use of Vehicles?

July 22, 2021 | Commercial Auto

Vehicles owned by a business and used for work purposes—as opposed to personal vehicles—are typically insured under a commercial auto insurance policy. This insurance protects your company from claims if someone alleges that an employee driving a company vehicle is at fault in an accident. It can cover things like legal fees and the medical costs of others.

Business owners will sometimes ask, “Does commercial auto insurance cover personal use of vehicles?” The answer is, yes, it can cover the cost of damages even if the vehicle is used for personal activities outside of its primary business use.

FAQ Article Large Comm Auto 1068764260

Commercial Vehicle Insurance vs. Hired and Non-Owned Auto Liability

It’s important to note that commercial vehicle insurance does not cover employees who use their own vehicles for work purposes. For example, if your workers make deliveries or run business errands in their personal vehicles, those activities are not covered by your commercial auto policy. 

What you need for that type of scenario is what’s called hired and non-owned auto liability. It’s add-on insurance that can be part of a general liability insurance policy or a business owners policy (BOP). This add-on also can cover the use of other vehicles that you don’t own, like a leased car or rented truck.

If you have questions about this distinction, you can contact us about our commercial vehicle insurance. We’re happy to talk with you about your needs and the policies that can address them.

Who Needs Commercial Auto Insurance?

If your business owns vehicles, you should have commercial auto insurance to protect them. We provide policies for many types of businesses, including:

  • Accountants
  • Architects and engineers
  • Bakeries
  • Business management consultants
  • Cleaning and janitorial companies
  • Contractors
  • Corporate trainers
  • Dog walkers and pet sitters
  • Electricians
  • Food service companies
  • Home inspectors
  • IT consultants
  • Landlords
  • Landscape companies
  • Personal trainers
  • Photographers and videographers
  • Restaurants
  • Retail businesses
  • Transportation companies
  • Trucking companies for hire
  • Wholesalers

Who has the Best Commercial Auto Insurance?

In determining who has the best commercial auto insurance, there are a few things to consider. One is that you want to keep your insurance costs as low as possible while still ensuring you have proper coverage. At biBERK, we don’t use middlemen or brokers. Consequently, we’re able to provide insurance directly to you for up to 20% less than other companies.

The organization behind your commercial auto insurance is important, too. biBERK is part of Warren Buffett's Berkshire Hathaway Insurance Group with millions of satisfied customers, more than 75 years of insurance experience, and $38 billion in paid claims in 2020. So, we’re a company with expertise and financial resources, and one you can trust to have your back if an incident occurs.

Commercial Auto Insurance FAQs

Our licensed insurance experts are always happy to talk with you. But you may be able to find answers to your commercial auto insurance questions below.

Commercial Auto Insurance FAQs

Our licensed insurance experts are always happy to talk with you. But you may be able to find answers to your commercial auto insurance questions below. 

How much does commercial auto insurance cost on average?

The cost of commercial auto insurance varies based on things like the type of vehicle, how it’s used, and the driving records of the people who will operate it, to name just a few. For example, commuter/consultant use of smaller vehicles can cost $600 to $1,500 per vehicle per year. The cost to insure vehicles for for-hire trucking can be $5,000 to $25,000 or more per vehicle per year. Livery vehicles may cost $2,000 to $6,000 per vehicle per year to insure.

For damage caused in at-fault accidents, which drivers are covered by my commercial auto insurance?

Owners or employees that drive your vehicles on a regular basis should be noted on your policy. If a vehicle is scheduled on the policy, the damage from an accident would be covered as long as the driver was permitted to use the vehicle.

Related Articles

Teaser 1214344751

The vehicles you use for conducting business are insured separately from your personal vehicles. Business vehicles should be protected under a commercial auto insurance policy, which covers: Read More

FAQ Article Small Trailer Bus. Auto Ins. 508184685

Companies that have their small business insurance through biBERK will sometimes ask us, “If I pull a trailer with a vehicle covered by business auto insurance, is the trailer protected?” The answer is that it depends on the weight of the trailer. Read More

Teaser Comm.Carins.Cost 856730690

If you use cars, pickup trucks, or other vehicles in the course of doing business, you need commercial car insurance. Having proper coverage can keep you from having to pay for bodily injury liability, property damage liability, medical expenses, damage to your own vehicle, and other expenses out of pocket. Read More