Posted in Business

Insuring a Pick-Up Truck for Your Personal Business

If you use a pick-up truck for your personal landscaping, construction business, plumbing service or any other business endeavor, consider purchasing a commercial pick-up truck insurance policy. Often times, standard personal insurance policies will not cover vehicles that are used for business purposes.

When the truck is used for your personal business, it is sometimes difficult to determine whether or not it should be covered by a personal policy or a commercial policy. However, if other employees drive the car for your business, or if you use the truck for money making endeavors, it is absolutely necessary to purchase a separate policy.

Since pick up trucks are heavy and larger than traditional cars, they can do more damage in the event of a collision. Insurance rates reflect that and are often times higher than traditional car insurance rates.

When purchasing an insurance policy, consider the following:

Collision Insurance

This covers bodily injury and property damage that occurs when your truck is in an accident where you are at fault.

Liability Insurance

This protects you from any legal claims or liability that may arise after the accident if the accident was your fault. You will pay for damages to the other person’s property or body. If the person you hit tries to sue you, liability covers the costs of the court case and settlement (up to the maximum payout for the policy).

Comprehensive Coverage

This covers damage that is not the result of an accident or collision. This includes acts of nature (hail, rock fall, tree fall, flood, fire, etc). It also covers theft and vandalism.

Uninsured Motorist Coverage:

This covers your truck if it is in an accident with an uninsured or underinsured motorist. If you are hit by an uninsured motorist who cannot pay for the repairs, your business still needs the truck, and therefore you can’t afford any downtime while you wait to sort it out in court. API shipping

The coverage needed is determined by many factors. When speaking to an agent about your situation, be ready to discuss the following:

How large is your business?

How many employees will be driving the truck?

How much is the truck worth?

How many miles do you anticipate driving per week or month?

Is your business stable enough to take on losses without additional insurance coverage?

Your insurance agent can offer various quotes and levels of coverage. If you feel your monthly payment is too high, consider raising your deductible to lower your premium. However, you must understand that if your truck is in an accident, you are responsible for the entire deductible amount before the insurance kicks in.