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If you have a one vehicle cab service and think you can just use your private vehicle and still be covered if something
happens? You're wrong. It doesn't matter if you only have one vehicle that is used in a business, the use is still
business and a personal auto pollicy does not extend to business use.
One easy to understand aspect of commercial
vehicle coverage is that the liability concerns are much greater. Not only is the nature of being on the highways more often
an additional risk, the fact that someone may have hired you to carry them puts a much greater responsibility on you for their
safety. Not that you would not be careful if they had not paid you but some accidents are indeed unavoidable and that person
that paid you to carry them will not understand and they will sue you.
Protection in law suits is the primary concern
with commercial vehicle insurance. Liability responsibility amounts are far greater than for personal auto just on this account.
And for this reason, the commercial policy should be in the business name instead of the individual owner.
There
are discounts for large fleets and usually a multi-policy discount to have your general liability and commercial vehicle policies with
the same company if it doesn't already have the endorsement for commercial vehicles built in the general liability.
One drawback to commercial vehicle policies is that if you have several vehicles, all the drivers are rated on the
premium and calls into play the driving record of these drivers. This can cause having to make the decision to let a good
worker go because of his driving record or let him stay and cost extra to insure him. Keeping on a bad driver can extend the
liability to negligence if a driver has a particularly bad record. Negligence increases the liability charged against the
policy owner.
In addition to the basic property damage, collision, bodily injury, uninsured motorist and medical
payments coverages, the commercial vehicle policy offers cargo coverage which is not available with personal auto coverage.
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