5 Reasons Why You Need Commercial Motor Insurance for Your Business


Do you know it is essential to have personal car insurance? Moreover, having a motor insurance is a mandatory requirement by law. For example, it is illegal to drive or park your motor vehicle on a public road without vehicle insurance.

Vehicle insurance is not limited to cars for personal use. A business person should also acquire commercial motor insurance to protect their vehicles and employees while on the highway. It is essential to protect the car that helps you run your business, especially if you use it in your daily activities.

What is Commercial Motor Insurance?

Commercial cars are vehicles used commercially and possess a commercial value. Therefore, commercial motor insurance is a policy intended for vehicles used by or for a business. Business car insurance only covers your vehicle used for business commitments.

Apart from anti-car napping services and road assistance after a breakdown or an accident, commercial motor insurance also covers the following:

  • Demise or injury of commuters in the insured automobile.
  • Death or harm of third-party persons.
  • Medical expenditures
  • Third-party property damage
  • Car damage
  • Vehicle robbery

Having a commercial motor vehicle means that you possibly need it for your business commitments. Hence, without the best insurance cover, your car is off the road for a longer period upon an accident confining your incomes for the same duration.

Below are five reasons why you need commercial motor vehicle insurance for your business.


Commercial Motor Vehicle Insurance Offers Better Coverage

unlike private accident insurance

A commercial auto insurance policy provides more coverage that caters to your business requirements. For example, most commercial vehicle insurance policies cover liabilities, medical expenses, and property damage.

However, you can modify your business vehicle insurance policy to include extra securities that aren’t commonly accessible in a personal car policy.

Commercial Auto Insurance Shields Your Employees, Merchandises, Equipment, and Car

Driving a private car call for a personal accident insurance policy cover not only for the vehicle, but also your passengers, yourself, pedestrian, or any property that might be involved once an accident occurs.

Driving a business vehicle is different and requires extra protection. Besides the car, you also have to ensure that your products, materials, employees, equipment, customers, and everything your business truck transports are well protected from an unfortunate event while in transit.

It’s Hazardous to Drive a Commercial Vehicle Than a Personal Vehicle

Unlike personal use cars, motor vehicles used for carrying equipment and goods spend more time on the road. The longer distance a car covers, the higher the risks of meeting an accident or getting damaged.

Mostly the destruction caused or done by a commercial motor vehicle isn’t the driver’s fault. Therefore, you can benefit as a business person from the protection of car insurance for commercial vehicles.

Your Private Vehicle Won’t Cover Your Commercial Cars

Suppose you use your car to deliver goods to your clients and happen to cause a fatality with another vehicle or cause damage to its occupants. In that case, your company is likely to get sued to collect damages from your business. Having personal car insurance coverage won’t help you in such circumstances.

Your insurer may deny your claim since your car policy doesn’t have coverage for business use. Therefore, you are likely to cater to the damages from your pocket or business’s money. Always declare during your car insurance application that your vehicle will be used for commercial purposes. Commercial vehicle insurance guarantees full compensation upon an accident.

Your Business Gets Higher Insurance Parameters

It is riskier to drive a commercial vehicle compared to a personal car. Thus, it would be best if you had an insurance policy that guarantees higher coverage. Commercial motor vehicle insurance policies come with higher limits to cater to high costs of liabilities.

Advanced limits save you cash in the long run before you are obligated to cover some of the liability expenses from your pocket.


Commercial motor vehicle insurance is expensive compared to personal car policies. This is because the policies come with broader coverage and the high risk involved in driving a money-making vehicle. However, the security offered against you and your business is worth the additional coin.