Important Considerations when Purchasing Business Auto Insurance
If you have a vehicle you use for commercial purposes, it should have a higher level of coverage than a typical personal auto insurance policy. Some sole proprietors and self-employed people assume that their personal auto policy will suffice, particularly when occasional business trips are the only commercial use of their cars. However, even using a vehicle for a limited amount of business can necessitate additional coverage.
Those who act as independent contractors may also need to secure commercial auto insurance, such as when using a personal vehicle to make deliveries for a client. A common example of this scenario is someone who works as a courier. In this case, whether you are a direct employee of the courier company or an independent contractor, you will likely need to cover your vehicle for commercial use. The same holds true if you are a business owner and you allow other people (such as your employees) to use your vehicle for business purposes.
If you reside in Maryland, it is important to be aware of the state requirements pertaining to the type and amount of coverage you need for your commercial auto insurance. First of all, Maryland requires all vehicles that are registered in this state to be insured by a carrier that is licensed to do business here. In addition, the minimum auto insurance requirements include:
-$30,000 for physical injury (per person)
-$60,000 for physical injury (two or more individuals)
-$15,000 for damages on property
-Personal Injury Protection of at least $2,500
-Minimum limits for uninsured motorists coverage.
It is important to note that some businesses must comply with state and federal regulatory standards in operating their vehicles. For example, if your company intends to haul cargo interstate then you must meet specific insurance requirements by the Department of Transportation. Ask your insurance agent for further details on such requirements.
After you decide whether or not to carry commercial insurance, you need to choose a carrier that specializes in this type of coverage. Otherwise, you may end up paying far more than you should. The best way to find the right insurer is to talk with an independent agent that has access to a wide range of companies with varying specializations. This way, you receive personalized service from an agent that is does not represent one particular insurance company. In addition, you receive coverage from the carrier that offers the best commercial auto insurance rates in your area.