Commercial or Personal Auto: Which is Right?

If, like many Americans, your family car is also used for purposes that could be considered commercial use, you may want to steer yourself into a chair and look over your insurance policy.

You'll need to consider buying a commercial policy or make sure your existing policy covers the vehicle for business use.  Every company has different guidelines and may surcharge for business-use coverage on a personal auto policy.

One thing to keep in mind when determining if you should have a commercial auto or personal auto policy is that it isn't where you drive, but why you are driving:

• Are you a sales manager who visits different stores/locations within your region?
• Are you delivering pizza or other goods to customers?
• Do employees drive your vehicle?
• Do you drive people for a fee?  (Rideshare such as Uber or Lyft)
• Does your vehicle have commercial license plates?
• Do you haul equipment such as trailers, ladders, etc. in or on your vehicle?
• Do you need more liability coverage than a personal auto policy provides?  
• Do you need special coverage for situations encountered while conducting business?  

If you are think that you might need a commercial auto policy, or have questions about what is covered under your personal auto policy, please give your helpful Absolute Insurance agent a call today at 515-279-2722 or email us at service@insaia.com.

Rental Car Rules

Do you have an upcoming trip planned where you will be renting a rental car?  Pekin Insurance, one of the companies that we represent, posted a blog earlier this month regarding rental cars and how to avoid a big rental car bill.  

1. Make Sure Your Insurance Checks Out:  The vast majority of insurance policies transfer over to rental cars - the coverage you have on your vehicle would be the same coverage as the rental car.  For example, if you have liability-only coverage on your vehicle, your rental car would have liability-only insurance.  If a claim were to come up, it would be filed with your auto insurance company.  Your credit card company you use when paying for your rental car may also provide some coverage as well.  Before you rent a car, you should talk to your insurance agent or credit card company to know what coverages transfer.
2. Your Age Affects Price:  Some companies will apply a "Young Driver" charge for any driver under 25
3. Watch Out for Extra Fees:  Make sure to read the rental agreement to avoid extra fees.  There are usually additional fees for returning the car with less than a full tank of gas, using a toll transponder, or using GPS.  
4. Skip the Inspection at Your Own Risk:  Before you drive off in your rental car, make sure to take the time to do an interior and exterior inspection of the car.  If you have a smartphone, make sure to document any existing damage with pictures or videos and report them before driving off.  (Make sure to get down under the bumper too)
5. Think Before You Sync:  Several in-vehicle systems store information such as contact information and even work/home addresses.
6. More Drivers Could Mean More Money:  Before you add more drivers, look at what extra fees might be included with each additional driver and evaluate whether you think additional drivers are needed

For more information, check out the blog from Pekin Insurance!  If you have any questions about what coverage transfers from your auto policy, contact your agent.