Do You Need Commercial Auto Insurance for Rented Vehicles?

Some businesses do not need to use a vehicle for delivery all of the time. You may need a special type or sized truck, though, for some tasks. If you own a vehicle and use it for your business, it is important to maintain a comprehensive and complete commercial auto insurance plan. If you do not own the vehicle, you may not need to have your own policy. However, there are limitations and key factors to keep in mind when choosing the right type of auto insurance and business insurance.

Rented Vehicles and Commercial Auto Insurance

If you need to rent a vehicle for your business for a one-time need, it is rarely necessary to obtain commercial auto insurance on that vehicle directly. If you rent it more frequently, though, it becomes more of an important investment than you may have previously considered. In most situation, infrequent use cannot require the need for a separate policy. In these cases, the existing insurance policy on the vehicle from the owner may provide financial protection for you should an accident or incident occur.

In some situations, you may want to purchase a secondary or complimentary commercial auto insurance, though. For example, if you are transporting goods, perhaps your inventory or a large amount of valuable equipment, you want to be sure that onboard asset also has ample financial protection. In this case, you may wish to turn to an auto policy for coverage that’s specific to the way you plan to use it.

In all cases, it is up to you, as the business owner, to check the existing auto insurance plan of any vehicle you plan to use. It should have proper coverage for your business activities, protect your drivers or other employees, and provide for enough contents insurance based on what you plan to transport (if anything). Most importantly, ensure there are no exclusions listed on the plan that would interfere with the way you plan to use the vehicle.

Business insurance is available to meet most of your needs for auto coverage. Talk to your agent to find out what the best way to protect your rental use is depending on who you rent from, how frequently, and the use.