What does my commercial auto insurance cover?

Are you struggling to find the right auto insurance for your business? Did you know there are commercial auto insurance plans for trailers and fleet vehicles? Navigating coverage changes can be tricky, but we want to shed some light on how to understand your auto policy. Let’s explore the basics of what commercial auto insurance covers, and common questions you may have for your insurance broker.

What is a commercial auto insurance policy?

What is the difference between a personal and commercial vehicle? Personal vehicles are those used to commute to and from work and must be legally registered with auto insurance in Alberta. Alternatively, commercial vehicles are used to transport goods, clients, or employees. Commercial auto insurance provides third-party liability and accident benefits, with the option to add comprehensive and collision insurance coverage to your plan. 

When does commercial auto insurance apply to you?

  • The vehicle is registered under the company name
  • It is used to transport materials or people, including ridesharing and deliveries
  • The vehicle has work-related equipment installed
  • Your employees operate the vehicle
  • Your personal vehicle is used specifically for work

Commercial auto insurance costs vary depending on the industry or business and the degree of risk and exposure present, but your insurance quote will factor in each of the following:

  • The location you are operating from
  • The type of vehicles
  • The number of vehicles
  • Driver experience
  • The nature of your business
  • Claims history

In the case of ridesharing services, commercial auto insurance policies are already in place. Ridesharing allows drivers to use their personal vehicles rather than commercially licensed vehicles. When registering for your personal auto insurance, you must clearly state if it will be used for ridesharing purposes. While insurance policies for ridesharing are specifically tailored to the driver, you may find that your personal auto insurance has a higher premium.

Do I need both personal and commercial auto insurance?

The difference between personal and commercial auto insurance lies in the types of risks covered, coverage limits, and policies. Personal auto insurance covers your individual needs as a driver, while commercial auto insurance is customized to accommodate a wide variety of business activities.

If your vehicle is used only for driving to and from work, you will need personal auto insurance. If your vehicle is used to haul equipment, drive clients, or make deliveries, then choose a commercial auto insurance plan. At Sadler Insurance, we strive to find the best plan for you and we can customize your commercial auto insurance to best suit your business needs.

How does it apply to trailers?

Just like your vehicle, the type of trailer will determine what type of insurance is required. On the whole, trailer insurance coverage should include liability, collision, and comprehensive. In the case of hail damage, theft or vandalism, comprehensive coverage can cover repair and replacement costs.

Alberta does not require mandatory trailer insurance unless it is self-propelled, in which case you will need travel trailer insurance. If your trailer is used for work, you can register for commercial trailer insurance. This commercial insurance extends to: 

  • Flatbed trailers
  • Gooseneck trailers
  • Livestock trailers
  • Auto haulers
  • Side dump trailers
  • Transfer boxes
  • Concession trailers
  • Dry freight trailers
  • Logging trailers
  • And more!

When should I consider fleet insurance?

If your business has more than four commercially insured vehicles, fleet insurance plans can offer you a better deal for the same coverage. For commercial vehicles to be considered a fleet, they must be owned and registered under a business or organization. Within your fleet insurance, you can assign named drivers to specific vehicles or insure all drivers to all vehicles. While your coverage remains the same as individual commercial auto insurance policies, fleet insurance policies offer you more flexibility.

Fleet insurance applies to any of the following:

  • Cities, municipalities, or townships
  • School districts
  • Care service providers
  • Farms
  • Auto repair garages
  • Restoration services
  • Dealerships and towing services
  • Transportation and trucking
  • General contractors

Finding the right commercial auto insurance plan for your needs shouldn’t be a hassle, and we are here to help. As an independent broker, we represent various insurance companies. Insurance agents and banks can offer limited products that cannot be customized, but with a Sadler Insurance broker, we can provide you with a variety of insurance products that fit your needs directly.  Request a quote and find ways to save on your commercial auto insurance today!