How to Determine Your Need For Commercial Van Insurance

It would seem that determining the need for commercial van insurance would be an easy thing. This isn't always the case, however. Some jobs blur the lines between the need for personal auto insurance vs. commercial van insurance. If you use your van or truck for occasional work use, as well as personal use, you might not be sure what type of insurance you need. Below you'll find information that should help you understand what type of insurance is right for you.

Difficulty: Moderate

Instructions

1. Who's name is the van registered to? If you own a van that's registered to a business, it's required to be insured under a commercial insurance policy. If you are a sole business owner and the vehicle is registered under your name, you'll need to determine what the primary usage for your van is. If you primarily use your van for personal use, it might make sense to keep it insured by a personal policy. However, if you use your van primarily for business use, your van will need to be insured under a commercial policy.

2. Do other employees drive your van? If so, you will need to insure it under a commercial policy. Most commercial policies require you to list your employees on them. Each employee has a different driving history that will affect the amount you pay for commercial van insurance.

3. If your primary use for your van is to drive you to, and from your primary place of employment, you probably don't require commercial van insurance. If you take your van from your primary place of employment to job sites, and client sites, you might be required to get commercial van insurance.

4. Below are examples of van usage that would require you to have commercial van insurance. Keep in mind that in all situations listed, your commercial van insurance policy will have different premiums based on the raised level of risk involved with transporting certain materials.
   
   *Transporting cleaning supplies for your business
   *Transporting flammable or hazardous materials
   *Delivering goods or supplies
   *Carrying tools or supplies

5. Where will the vehicle be parked overnight? Your insurance premium will most likely be lower if it's parked in a garage, rather than on the street. Are any other security features in place that could help prevent theft of the vehicle and the goods it transports? If so, this would also help reduce your commercial insurance premium as well.

6. Don't underestimate the need for getting the correct type of insurance for your vehicle. Remember that the main reason for having insurance is to protect your vehicle and the goods it contains. If you don't have the correct type of insurance, you could be putting your property at risk. A personal insurance policy won't cover any unique tools, or goods if they are stolen from your van.
   It's important to realize that all situations are unique. For this reason it is a must that you contact your current insurance policy holder to discuss whether you need commercial van insurance.

Tips & Warnings

• The information above is meant to serve as a guide to get you thinking about your insurance needs. If you're wondering what type of insurance you require, get on the phone and call your insurance policy holder.