How to Know If You Need Commercial Car Insurance in Colorado

How to Know If You Need Commercial Car Insurance in Colorado

Thanks to the popularity of Uber and Lyft, more people are earning money by driving their cars. However, this situation does pose a question for many of those drivers. Will your Colorado Springs car insurance policy cover you if you’re involved in an accident? You may need commercial car insurance to protect yourself and your passengers.

When Commercial Car Insurance is Necessary

Being a Uber driver is just one scenario for how you might use your car in a job or for earning an income. If you own your own business and allow your employees to drive your vehicle during the course of a work day, you’ll need to get a business car insurance policy. Some other scenarios include the following:

  • Registration of vehicle is under a business name
  • Vehicle is used as a taxi or other transport service
  • Vehicle is leased or rented to other drivers
  • Equipment has been installed on vehicle for business use
  • You will want to look at the latest laws in Colorado to determine if any other specifics apply. For instance, the weight of the vehicle may determine how it must be insured. If you find that any of these situations apply to your case, you’ll need to talk to your Colorado Springs auto insurance agency about changing your policy.

    What is the Difference Between Personal and Commercial Auto Insurance?

    The two types of policies are very different and provide different levels of coverage. A commercial policy usually has more liability coverage. It may also cover vehicles you rent or purchase in the future without getting a separate policy for each one.

    You can purchase trailer exchange insurance, which provides coverage for trailers you may use for hauling. Rental insurance may be included to allow you to rent a vehicle if yours is inoperable for a short time.

    If you use your vehicle for both commercial and personal use, you need to know how to ensure it’s covered correctly to protect yourself. If an accident occurs that isn’t covered under your current policy, you will end up paying for damages out of your own pocket. You could also be fined for not having the coverage required by law.

    Should You Get Commercial Insurance?

    This article is a guideline to help you understand the need for commercial auto insurance and the differences between it and personal insurance. To know if your unique situations requires you to get a new policy, you should talk to an insurance agent.

    Don’t settle for getting an online quote for car insurance. You need to discuss your situation with a person who is knowledgeable and up to date on current requirements and laws. You want to make sure you’re covered if an accident should happen while you’re working.

    You may find you need commercial car insurance to protect you while you’re earning money driving your vehicle. Make sure you have enough coverage and the right kind for peace of mind as you drive.



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