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Commercial auto insurance

Commercial Auto Insurance FAQs

Backing your business is clutch

Who can drive a car that’s insured under a Next Commercial Auto policy?

Anyone who regularly drives your vehicle should be listed on your Next commercial auto policy.

Other drivers can occasionally use the vehicle and still be protected by your coverage but they might not be covered if it is revealed they regularly use the vehicle for your business.

 

How do I know if I need Commercial Auto insurance?

If you have vehicles that are titled to your business that you or your employees drive, you’ll need commercial auto insurance. This is required by law in almost every state.

Even if you drive a car for work that’s not titled to your business, you’ll still need to get commercial auto coverage. This is because your personal auto insurance usually won’t provide coverage if you drive your own vehicle for business reasons.

Let’s say you’re a house cleaner and you drive your personal vehicle to all the homes you clean. You might think that the regular car insurance you got when you bought the care is enough, but if you got into an accident on the way to a job you might not be covered.

You might also want to consider commercial auto insurance if you use your vehicle to:

  • Tow a trailer carrying your work equipment
  • Transport goods
  • Help your employees get to job sites

Small businesses might sometimes ask employees to drive their own cars for a job or rent vehicles. Hired and non-owned auto insurance is a form of commercial auto coverage that helps pay for accident damages in these instances. You can add it as an upgrade to commercial auto insurance from Next.

 

I use my personal vehicle for my business. Can I insure it with this policy?

Yes! If you use your personal vehicle for business purposes, we can insure it under our commercial auto policy.

For example, if you own a van that you use for personal travel, as well as your job as a painter, it would be covered under our policy when it’s used for work purposes.

It’s important to note that we’re unable to provide coverage for certain high-end vehicles and vehicles larger than standard trucks or SUVs.

 

Does Commercial Auto insurance cover personal use for my own vehicle?

Yes, if your vehicle is covered by our commercial auto insurance it will be protected when driven for personal or work use.

For example, if you use that vehicle for your registered business to get to job sites and you sometimes use it on the weekends to haul your fishing gear, commercial car insurance would cover your fishing trips.

 

Are the items that I transport with my insured vehicle covered by this policy?

A commercial auto policy will cover the vehicle used to transport items, but not the items themselves.

For example, if you have a pickup truck that you use to transport ladders and power tools, the policy would cover the truck but not the equipment.

If you’re concerned about your gear going missing you should consider purchasing tools and equipment insurance. If you regularly transport your tools in your vehicle, this coverage will help replace or repair any damaged or stolen equipment.

 

What types of vehicles can I insure? How many vehicles can I insure under one policy?

You can insure 10 vehicles and up to 15 drivers with your commercial auto policy from Next. (Note: This is limited to four vehicles and eight drivers in California).

These vehicles can be owned by the business owner or the business, so long as they are used for business purposes. Unfortunately, we can’t cover certain high-end cars or vehicles larger than standard trucks or SUVs at this time.

 

Will my premium change or my policy be cancelled if I file a claim?

No, we won’t alter your premium during the term of an active policy or cancel your coverage due to a claim. We understand that filing a claim is stressful enough without having to worry about it affecting your premium.

At the end of your policy period, however, we will review the details of your business and vehicle activity. If either has changed since you first applied, we’ll adjust the premium up or down accordingly when you renew.

 

I run my business out of my vehicle. Does Commercial Auto cover this type of vehicle?

No. Unfortunately, our current policy cannot cover food trucks or mobile businesses that operate out of a van or truck.

For example, if you own a dog grooming business with a brick and mortar location, we can provide insurance if you drive to groom dogs at different locations, but we can’t provide insurance if you groom dogs in a mobile unit.

 

How we can help you with Commercial Auto insurance

If you have more questions, our licensed, U.S.-based insurance advisors are ready to help.

When you’re ready to explore coverage options for your business, you can get an instant quote online and purchase business insurance within a few minutes.