Please ensure Javascript is enabled for purposes of website accessibility Understanding the Details of Commercial Car Insurance

Understanding the Details of Commercial Car Insurance

You might need to obtain commercial car insurance coverage if you own a business that depends on vehicles for its operations. Additionally, you may need commercial coverage if you use your personal vehicle for job-related activities other than commuting to work, running errands, or going on road trips.

The sections below show more about how commercial car insurance works and how it can benefit your company.

Overview of Commercial Car Insurance

Despite sharing many characteristics with personal auto insurance, commercial auto insurance is created expressly for automobiles used for or by a business. This can apply to both personal vehicles and those you purchase for a company you operate.

Commercial auto insurance may provide both liability coverage and collision coverage for company vehicles and their drivers. If you are in an accident, the former helps cover the other driver’s repair costs and medical expenses. The latter pays for any damages or medical costs you or your vehicle may incur in the event of an accident.

One advantage of purchasing commercial auto insurance for your business is that your premiums are frequently tax deductible. To potentially lower your yearly tax liability, you can deduct them as a business expense.

Tax deductions for personal auto insurance rates are uncommon unless you use the car for business. You may not be able to subtract the entire premium amount even then. 

Common Coverage of Commercial Car Insurance

  • Delivery vans or trucks
  • Work vans
  • Dump trucks
  • Vehicles used in construction, such as forklifts
  • Food trailers and trucks
  • Service utility trucks
  • Box trucks
  • Company vehicles

Benefits of Commercial Car Insurance

Some cases that are unique to a business and its requirements are covered by commercial car insurance. For instance, you could require non-owned vehicle coverage as part of your policy if you have employees who use company cars or trucks. 

If you are self-employed and exclusively use your vehicle for business, you must have a commercial policy that covers it.

Commercial auto insurance might provide liability and accident damage protection. The limits of your liability coverage may be more than what you typically receive from a personal insurance policy.

This is helpful if you’re worried that your business will be sued after an accident involving you or one of your employees.

Commercial auto insurance may also cover other benefits besides liability and collision insurance. The following are some of these further advantages:

  • Accident-related personal injury claims or medical expenses
  • Theft, vandalism, falling objects, or weather-related damage
  • Uninsured or underinsured drivers’ damages
  • Costs associated with renting a temporary replacement vehicle for your business 
  • Rental cars for clients or staff
  • Cars owned by employees and used for work

The contents of commercial cars might be covered by your insurance. For instance, if you were to run a contracting business and transport tools or supplies in your work vehicles and the supplies inside the van were stolen, your commercial auto insurance policy might give compensation. 


If your company needs commercial car insurance, do your homework on the available possibilities before choosing one. Ask your current insurer if they also provide business insurance if you already have personal auto insurance. 

You might be able to get a deal on business insurance as an existing client. Additionally, if you’re occupied with running your everyday business operations, having all of your insurance in one location may be simpler than dealing with various insurers.

Get your commercial auto insurance in Conyers from The Tabb Insurance Agency. We offer different insurance plans and high-quality service in Conyers, Georgia, for your personal and business needs. Call us now to get started.