Commercial Car Insurance Paterson New Jersey NJ

Reader’s Question:

I’m having a hard time deciding on what to choose; a personal auto insurance policy or commercial auto insurance for business use in Paterson New Jersey? How do I know which is right for me?

Cody

Paterson, NJ

If your family car is also used for purposes that could be considered commercial use, you may have to review the terms of your insurance policy. You’ll need to consider purchasing a commercial policy or making sure that your existing personal auto policy covers the vehicle for business use. Whether or not you need a commercial policy would depend on how you use your vehicle and what insurance company it is under. Every insurance company has different guidelines and may surcharge for business-use coverage on a personal auto policy.

If you’re not sure whether business use is covered on your personal policy, call your insurance company or agent in Paterson New Jersey. To help you decide if you need to get a commercial auto insurance, you may want to ask these four questions:

• How do insurance companies determine commercial use? Commercial use of vehicles is defined as “engaging in transporting goods for compensation or a fee”.
• Do you need more liability coverage than what is provided in a personal auto policy? A commercial auto policy generally offers higher limits of liability but less or no coverage in areas that are not associated with commercial auto risks.
• Do you need special coverage for situations encountered while business is conducted? Commercial auto policies usually offer coverages not available with personal auto policies like hired and non owned auto coverage and coverage for towing a trailer for business use.
• Do you need to add employees as drivers to your policy? Commercial auto policies would allow you to list anyone under your employ. You don’t have this option in a personal auto policy.

Tags: auto insurance, business car insurance, Commercial car insurance