Who is covered on a commercial auto policy?

Who is covered on a commercial auto policy?

The commercial auto policy provides physical damage coverage for vehicles you own, lease, hire or use in your business and liability coverage for bodily injury and property damage caused to others by your use of the insured business vehicles.

Does commercial auto insurance follow the driver?

As long as a driver has the vehicle owner’s permission to operate the vehicle, the owner’s policy will provide coverage no matter who the driver is. The vehicle owner’s policy should cover injuries and property damage.

Can I let someone drive my company car?

Whether you operate a small business or a large business, allowing other people to drive your company’s cars is risky behavior. Most commercial auto insurance doesn’t extend to spouses, friends and other family members when an employer allows them to drive.

Does a car have to be insured by the registered owner?

No, in most cases, it’s unlikely that you’d be able to insure a car that isn’t in your name. Generally, whoever is the titled owner of a car needs to be the one to insure it. Car insurance companies want to make sure the primary policyholder has what’s called insurable interest in the car they’re insuring.

Am I covered when driving someone else’s car?

Your Comprehensive Car Insurance or Third Party Car Insurance policy is only attached to your vehicle. It doesn’t follow you when you drive other people’s cars. For someone else to be covered while driving your vehicle, they need to be on your policy as a listed driver.

Do you have to have your own insurance to drive a company car?

The answer: The Personal Auto Policy has an exclusion that states that there is no coverage for the use on a vehicle furnished or available for your regular use. Thus, when driving the employer-owned company vehicle there is no coverage under his personal auto policy.

Do I need my own insurance to drive a company vehicle?

If you have a company car, it’s likely you won’t need business car insurance as it should be insured by the company. However, it’s a good idea to check with your employer to make sure you’re fully insured.

Can a non employee drive a business car?

Your insurance company may deny your claim if a non-employee was driving. This will expose you and your business, which can become costly depending on the extent of the damage. There are business owners who allow their employees to use their cars for personal use outside of business hours.

What happens if a non-employee wrecks the company car?

So, what happens if a non-employee wrecks the company vehicle? Your insurance company may deny your claim if a non-employee was driving. This will expose you and your business, which can become costly depending on the extent of the damage.

What does permissive use mean for car insurance?

Permissive use means that if you give another driver permission to take your car, they will be covered by your car’s insurance coverage. NOTE: Your own policy provides the primary coverage, not theirs. See below for more information. It’s a common misconception that car insurance follows the driver. In reality, car insurance follows the vehicle.

Can a car insurance company cover an employee’s car?

Hired and non-owned auto insurance may cover the damage to the other vehicle; however, it would most likely not cover the physical damage to the employee’s car. Again, speaking with an insurance professional is critical given the potential risk involved and many nuances with coverage.