Reader’s Question:

I’ve just started my own business for which I have purchased a reliable van to help me make deliveries. In the past, I have only had to get car insurance for my sedan, which is mainly for personal use. I would like to know how a commercial van insurance is different.

Kenny

Billings, MT

A commercial vehicle is defined by its purpose; Buses, taxis and vans specifically for the transportation of goods are considered commercial vehicles. In your application form for vehicle insurance, you are likely to be asked what the purpose of your van is. In this case, you must absolutely be honest and indicate that your van is for business.

Now, why get insurance? For one thing, it is a state requirement for every driver to have vehicle insurance – liability insurance at the minimum. But particularly, commercial van insurance must be obtained because vans for business ferry goods of value. A good coverage would protect the assets of any entrepreneur. Moreover, vans make easy targets for auto theft. This increased risk necessitates protection in terms of vehicle insurance.

Of course, Kenny, you can expect the monthly premium for commercial vans to be greater than cars for domestic purposes. Generally, the actual market value of a van may be higher. The mileage might also be greater. Both are important factors that affect what we all pay for car insurance premium.

Even though it is not mandatory, it would be wise to go with a comprehensive coverage. This way you are prepared for more eventualities that might lose your business a lot of money. There are some insurance companies in Montana that cater specifically to vans or business vehicles. Check them out and go shopping!