When Do You Need Commercial Auto Insurance?

Commercial auto insurance

If you’ve ever owned a car, you’re familiar with auto insurance. But did you know that there’s a big difference between personal car insurance and commercial auto insurance?

If you own a car and it’s for personal use by you and your family members — then you likely do not need commercial auto insurance. If you own a vehicle that’s used to support a business in any way, you likely need commercial auto insurance.

Commercial auto insurance can be customized to fit the specific needs your business has. When you’re looking into commercial auto insurance, it’s important to make sure that you understand what and what isn’t included in your policy. This way, you aren’t leaving yourself vulnerable to risks and losses.

We’ll help you understand:

  • When you need commercial car insurance
  • How commercial car insurance can protect you
  • What the most common types of commercial insurance are
  • How Bow Valley Insurance can help design a customized commercial car insurance package for you.

How do I know if I need commercial car insurance?

Ask yourself these three questions to determine if you need commercial auto insurance instead of personal auto insurance for your vehicle:

  1. Who owns and operates the vehicle?

    If your vehicle is owned by the business or used for business needs, you should have commercial auto insurance for it. If your employees use the vehicle, they must be listed as drivers on your commercial auto insurance policy.

  2. What type of vehicle is it?

    If your vehicle is a truck, tractor, trailer, or any other similar vehicle specifically designed for construction, landscaping, etc. purposes, it will require commercial auto insurance.

  3. How is the vehicle used on a daily basis?

    Here are some sample uses of a vehicle that would require commercial auto insurance:

    • You deliver goods in your vehicles – such as flowers, restaurant supplies, or doing general delivery of miscellaneous goods.
    • You transport people in your vehicle – such as driving people to weddings in a limousine
    • You use your vehicle to transport equipment, such as lawnmowers or backhoes to a job site

What Commercial Auto Insurance Can Protect You Against

If you need a commercial vehicle insurance policy, at Bow Valley, we’d be happy to walk you through how a good policy can protect you. These are the most common things that a commercial vehicle insurance policy will help you with:

  • If you, your employees, or passengers are injured in an accident, you will be covered for various expenses, including medical expenses and lost wages.
  • If anything happens when you are transporting your goods to customers or to an event you’re hosting.
  • Replacement car coverage for when your commercial vehicle is being repaired.

Types of Commercial Auto Insurance Options

You can customize your commercial auto insurance to suit the needs of your business. These are the most common types of commercial auto insurance coverage:

  • Third-Party Liability: Provides coverage if you are legally responsible for a collision that injures or kills someone or damages their property.
  • Accident Benefits: These benefits vary but can include income replacement, payment for medical treatment and rehabilitation costs, and funeral expenses.
  • Collision: Reimburses you for damages that are caused to your vehicle by a collision with another vehicle or object, or a rollover.
  • Comprehensive: Covers damage not covered by collision – e.g. fire or theft or collision with an animal.

We realize these may not cover every situation, that’s why we encourage you to call us, so we discuss how to best customize a commercial auto insurance package for you.

To learn more about why you need commercial auto insurance, call Bow Valley Insurance at 587-855-9918 or contact us here.


Coverage is subject to policy wording, terms, conditions, and deductibles. Protection is limited to the perils, coverage, exclusions, and limits shown on the policy.