Reader’s Question:

I have a small home-based business. Right now I am confused whether to avail of personal vehicle insurance or commercial vehicle insurance? Can anyone help me?

Tina

Biloxi, MS

Tina, you forgot to include in your query a very important thing so that I could answer your question as properly as possible. That is the nature of your business. You see, the nature of your home-based business would highly affect your decision in choosing between personal vehicle insurance or commercial vehicle insurance.

For example, if your home-based business offers delivery service, you might want to consider purchasing commercial vehicle insurance. This is also highly advisable, number one: if you have a fleet of delivery vehicles; and number two: if you are expecting a great influx of job orders for delivery.

On the other hand, if your business does not entail you being on the road that often, I think that personal vehicle insurance would already to suffice to cover your insurance needs. An example is if you are a freelance real estate broker who would only be using your vehicle at a minimal amount of time.

Now, the most important thing you should remember is that in choosing the best vehicle insurance for your business, you should make a careful approximation of how frequent your vehicle is going to be on the road. Always remember that a vehicle that is always on the road is more exposed to vehicular accidents, and high exposure to accidents translates to higher vehicle insurance premium.