Top Determine Whether You Need Commercial Insurance

Thinking about the following might help you determine whether you need fleet or commercial insurance:

• How many and what kind of vehicle(s) you need to insure

• How the vehicle(s) is being used

• Who drives the vehicle(s)

• Who owns the vehicle(s)

Depending on your situation, you might think you need fleet or commercial insurance when you actually don’t. For example, if you’re part of a business that owns numerous vehicles that operate solely for business purposes, you probably need fleet or commercial insurance. If, on the other hand, you’re self-employed and use one particular vehicle for your business purposes, you might need commercial insurance―but you might not.

Oftentimes, whether you need fleet or commercial insurance depends on scenarios like the following:

• Your business equipment cannot be removed from the vehicle(s).

• You or your business picks up and delivers goods and/or people.

• You have multiple vehicles used by craftsmen or skilled workers (aka artisan use).

• The coverage limits on a personal auto policy are not high enough.

• You need to protect your employees when they use your company vehicle(s) or their own vehicles on company time.

If you need more help figuring out whether you need fleet or commercial coverage, you can contact the Motor Vehicle Division (MVD). The state also recommends contacting the Office of Insurance as well as someone from your County Tax Commissioner’s office.

Top Determine the Required Amount of Coverage

You want to purchase both the required amount of coverage and the amount that best protects your vehicle(s). To do this, you’ll need to discuss the following with any potential insurance providers:

• Who owns the vehicle(s)

• Weight of the vehicle(s)

• Usage of the vehicle(s)

• Liability limits requirements

Although the policies have different names, it might turn out that you only need to purchase the same liability coverage amounts as the state requires for regular passenger vehicles. Those amounts are:

• $25,000 per person for bodily injury

• $50,000 per accident for bodily injury to two or more people

• $25,000 per accident for property damage

In addition to speaking with state-licensed insurance providers, you can contact the MVD, the Office of Insurance, and your County Tax Commissioner’s office to determine how much fleet or commercial coverage you need to purchase.

Top Purchase a Commercial Policy

If the option to self-insure isn’t available to you, or you’d simply rather purchase a traditional fleet or commercial insurance policy, shop around for carriers that specialize in this kind of coverage. Agents with these companies can answer questions about coverage requirements, minimum amounts, and how it all meets your needs.

Electronic Reporting

Whether information about your insurance coverage gets submitted to the Georgia Electronic Insurance Compliance System (GEICS) depends on the kind of policy you have.

Information about commercial vehicles registered under a commercial insurance policy does get submitted; information about fleet vehicles, self-insured vehicles, and those under the International Registration Plan (IRP), however, does not.

Top Proof of Insurance and Financial Responsibility

Proof of insurance and financial responsibility for fleet and commercial vehicles is a bit different than that for regular passenger vehicles. The state thoroughly outlines acceptable proof, but for quick reference, if:

• You’ve insured your vehicle with a fleet insurance policy, you must carry a valid fleet insurance policy card in the vehicle at all times.

• Your vehicle is under the International Registration Plan (IRP), you must carry the valid insurance policy information card in the vehicle at all times.

• You’ve self-insured your vehicle, you must carry your Certificate of Self-Insurance from the Insurance and Safety Fire Commissioner’s office in the vehicle at all times.

Top Penalties for Failure to Maintain Financial Responsibility

Fleet and commercial vehicles aren’t exempt from establishing financial responsibility, and penalties for failure to maintain that responsibility might include:

• Up to six months of registration suspension, depending on the offense number.

• A lapse fee of $25 and a registration reinstatement fee of up to $160, depending on the offense number.

• Misdemeanor charges if you drive the vehicle before paying the fees and reinstating the registration.

Keep in mind, too, that penalties might actually be stiffer when fleet and commercial vehicles are involved. Please contact the MVD at (404) 968-3800 for more information regarding penalties for having no proof of insurance for these kinds of vehicles.