There are several reasons you would want to insure a commercial vehicle for personal use. For instance, you may live in a rural area and need a commercial vehicle to transport farm produce or prefer the features and benefits of a commercial vehicle over a passenger vehicle. Whatever the reason, always understand what you are getting into before getting
cargo van insurance for personal use.
1. Commercial Vehicles Are More Expensive To Insure Than Passenger Vehicles
Commercial vehicles are generally larger and heavier than passenger vehicles, which means they cause more damage in an accident. They also tend to be driven more aggressively and, therefore, more likely to be involved in accidents. As a result, commercial vehicle insurance rates are typically 20-30% higher than rates for passenger vehicles.
2. You May Not Get Full Coverage On A Commercial Vehicle
Most insurance companies will not provide full coverage (liability, collision, and comprehensive) on a commercial vehicle. They consider commercial vehicles to be high-risk. As a result, you may only get liability coverage, which will not cover any damage to your car in an accident.
3. You May Need Special Endorsements On Your Policy
Endorsements are additional coverage options that you can add to your insurance policy. Some endorsements that you may need for a commercial vehicle include cargo insurance, which covers the goods or products you are transporting in your truck, and hired auto insurance, which covers cars you have leased or rented for business purposes.
4. You Will Be Held To Higher Standards Of Safety
Since commercial
vehicles are considered high-risk, insurance companies will hold you to higher standards of safety. This means that you may be required to take special driver training courses, maintain a clean driving record, and install additional safety features on your vehicle.
5. You May Need A Commercial Driver's License (CDL)
You will need a commercial driver's license (CDL) to operate a commercial vehicle in some states. A CDL is a special license that allows you to drive certain cars, such as buses, trucks, and vehicles with trailers attached. You may also need to pass a written exam and a skills test to get a CDL.
6. You May Be Subject To Special Rules And Regulations
As a commercial vehicle driver, you will be subject to special rules and regulations set by the government. These rules and regulations are designed to ensure the safety of both you and the public. For example, you may be required to adhere to special hours of service rules, which limit the number of hours you can drive in a day or week.
7. You Will Need To Keep Track Of Your Mileage
Since commercial vehicles are used for business purposes, you will need to keep track of your mileage for tax purposes. This is because you can deduct the cost of operating your vehicle from your taxes. It would help to keep a logbook or mileage diary that records each business trip's date, time, purpose, and distance.
Conclusion
Following these tips will help ensure that you are adequately insured if you choose to insure a commercial vehicle for personal use. Remember, commercial vehicles are considered high-risk, so you take special precautions to protect yourself, your car, and the public.