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Other Commercial Auto Insurance Coverages

When it comes to your commercial auto insurance, there are certain types of coverage that most drivers know they need. Commercial liability insurance, for example, is a must-have for anybody who uses commercial vehicles for business purposes.

Still, there are some types of coverages that might not be on your radar as your shop form commercial auto insurance. Read more to learn about these types of commercial coverage. 

Non-Owned Vehicle Insurance

There will likely be occasions where you or your employees, for business purposes, need to operate vehicles that aren’t included on your commercial auto insurance policy.

Non-owned vehicle insurance provides coverage when you operate vehicles not owned by your business.

Types of Non-Owned Vehicle Insurance

Several types of non-owned vehicle insurance on the market will cover you in various situations.

Types of non-owned vehicle insurance include:

  • Hired auto coverage – This coverage will provide you with liability insurance when you are driving a car that is hired, rented, or borrowed.
  • Employer’s non-ownership coverage – This coverage provides liability coverage for your employees when they have to drive their own cars for work purposes.
  • Any auto coverage – Any car you purchase during your policy period can be covered by your existing policy through this coverage.

Non-owned vehicle insurance can be a great addition to your commercial auto insurance policy. If you find that you and your employees are often driving vehicles not insured through your policy, non-owned vehicle insurance may be an essential component of your policy. 

Individual Named Insured Endorsement

Similar to non-owned vehicle insurance, this coverage is meant to provide you with commercial car insurance when operating vehicles that do not belong to you for business purposes.

In order to get this endorsement, you must:

  • Be an individual or sole proprietor of a company.
  • Have a vehicle you use for both work and personal purposes on your commercial insurance policy.

Here’s how it works: When your vehicle is covered by a commercial auto insurance policy and you use it for both business and non-business purposes, this endorsement will extend the same liability and physical damage coverages to any vehicle that you borrow, lease, or rent.*

This endorsement also extends your policy's coverage to your spouse or any other relatives who live with you (as long as the vehicle they are operating isn’t owned by anyone in your household).

*Any borrowed, leased or rented vehicles cannot be available to you on a frequent basis. 

Drive Other Car Insurance

Drive Other Car Insurance coverage is very similar to Individual Named Insured Endorsement coverage but is geared towards executives of larger corporations or organizations.

It can sometimes extend out to cover spouses of said executives. 

If your business involves the storage of other people’s vehicles (e.g., towing companies or vehicle service companies) you will need garagekeepers legal liability insurance.

This type of commercial auto insurance covers you if a vehicle is damaged while you are storing it due to:

  • Collision.
  • Fire.
  • Theft.
  • Vandalism.

Most commercial auto insurance companies will not offer garagekeepers legal liability unless you also have standard commercial auto liability insurance as part of your policy.

NOTE: If your company has more than one location, you must have separate coverage for each location.

Purchasing Commercial Auto Insurance

While the above coverages are not the most common types of commercial auto insurance, they are widely available through most commercial auto insurance companies.

If you feel like you need to purchase these coverages, remember to have them included as part of your commercial auto insurance quotes. Do a fair amount of comparison-shopping to ensure that you get the best commercial car insurance policy possible at the best rate possible.

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