The world of business insurance can be confusing. Deciding what types of insurance to purchase, how much coverage you need, and which provider to choose can be overwhelming. When it comes to commercial vehicle insurance, there can be even more things to consider, such as what qualifies as a commercial vehicle and whether your personal insurance will cover you if you run a work errand in your personal car. (Usually, it doesn’t.)

If you’re in the market for commercial vehicle insurance, let’s look at some common myths about insuring your work vehicles:

Misconception: Personal auto insurance will cover business uses.

Reality: Never assume that your personal insurance will cover you when you use a personal car for business purposes. Even occasional business use of your personal vehicle can expose you to additional risks that are only covered under a commercial vehicle policy. If you make a claim against your personal policy for something that happened when you were using your car for work, your claim could be denied, leaving you to pay for the damage yourself.

It’s important to talk with an insurance specialist. They can help answer coverage specific questions about your business coverage and policy details.

Misconception: If you only use your personal vehicle for deliveries, you don’t need commercial vehicle insurance.

Reality: Regardless of the task, if you are using a vehicle for business purposes or as an employee, it can be considered a commercial vehicle. A commercial vehicle insurance policy is usually the best option to ensure that you have the right coverage.

Misconception: Commercial vehicle insurance is only required for trucks and vans.

Reality: Any vehicle being used for business purposes can be considered a commercial vehicle, even a compact car. You do not have to be hauling freight across provincial boundaries for your vehicle to qualify as a commercial mode of transport. For example, driving to meet a client or dropping off products locally are both business uses that can be carried out in a smaller vehicle.

Misconception: All commercial vehicle insurance policies are the same.

Reality: Commercial vehicle insurance policies can vary in many ways, including:

  • Coverage
  • Policy exclusions
  • Deductibles
  • Driver restrictions
  • Fleets vs. individual vehicles
  • Geographic limits, outside which the vehicle may not be insured

It’s important to have an insurance policy that corresponds to the way you use your business vehicles and the risks that your business may be exposed to.

Misconception: If your tools, products, or equipment are left in a vehicle, they are covered by your commercial vehicle insurance.

Reality: This will depend on the specifics of your policy. For example, some policies may only cover cargo in-transit but not if it’s left in the vehicle overnight or if the vehicle is left unlocked.

It’s important to conduct a thorough audit of how you use your commercial vehicles and where you might need separate insurance.

Misconception: If you run a seasonal business, you don’t need to insure your commercial vehicles year-round.

Reality: Although you may initially save money on premiums, there are some other things to consider when you use commercial vehicles for a seasonal business:

  • The vehicles can still suffer damage during the off-season.
  • You may end up paying higher premiums if you have a lapse in your insurance coverage.

Misconception: If you have commercial vehicle insurance, all your employees are covered when using company vehicles for business purposes.

 Reality: This depends on the details of your policy. Some policies cover all your employees, while others will require that you name all the potential drivers in the policy. There may also be restrictions on who can operate your business vehicles, such as a minimum age.

Misconception: Once you have a commercial vehicle insurance policy, you do not need to review your coverage.

Reality: It is a good practice to review your policy regularly. Your business may grow, you may take on new staff, or how you use your business vehicles may change. Ensure you have the right type of coverage for your company by reviewing them at least once a year. Consult with your insurance specialist about whether your coverage needs to be adjusted.

Ensure you’re protected with commercial vehicle insurance

Purchasing commercial vehicle insurance can be a complex undertaking. We’re here to demystify the process by helping you find a policy that will give your business tailored coverage. As a 100% Canadian-owned company, we’re dedicated to the success of all Canadian businesses.

Learn more about how we can help you protect your business vehicles by visiting our commercial auto insurance page today!

This blog is provided for information only and is not a substitute for professional advice. We make no representations or warranties regarding the accuracy or completeness of the information and will not be responsible for any loss arising out of reliance on the information.