18 Jun Business Auto Insurance When Should You Buy It?
Business auto insurance. When do you want to buy it?
Business auto insurance. When do you want to buy it? What do you need to know about it? And what additional coverages do you really get with a business auto insurance policy? You are listening to insurance Talk with Cheri Martinen and Rex Lesueur, the father daughter team from Bancorp insurance. We are located in beautiful central Oregon. Bancorp insurance is a family run local agency with over 30 years of educating our family, friends and neighbors about insurance and its nuances. Rex and I are happy to be here to do the share the show today and share with you our knowledge on insurance. Um, today we’re talking about business, auto insurance or commercial auto insurance.
Commercial Insurance is For Any Business Auto
I think people sometimes think, it is for a fleet of autos. Like you have to buy commercial auto insurance if you have got seven automobiles, or 70, 700. You see the truck drive by with the logo on the side and you instantly recognize the company. Well, yeah, that's part of what commercial insurance is all about. The logo is an indication that you're a business. Now even if you're a single vehicle business and you're driving your car to and from your job site, or to and from your business, or out working with your customers, commercial auto insurance is something that you need to think about if you have a business. It's different than personal auto insurance. One of the things, we always start with is your vehicle registration. Oh yeah. This is extremely important and we have this conversation with people almost daily. If you have a business in your business is XYZ LLC and your vehicle is in your personal name, and your driving your vehicle for your business and you're involved in an accident, what's going to happen is, when they go to sue you for injuring somebody, they're going to see the fact that while you have a corporation and you were working for your corporation at the time, but your, vehicle is registered to you yourself personally.
“You Need to Look At How You Vehicle is Registered.”Rex Lesueur, President Bancorp Insurance
If it has your name on it, XYZ LLC contracting. or whatever the name of the business. and so they're going to sue you as a business. Businesses do poorly in court, compared to individuals. If you don't have the registration matching the business name, then what you've done is you've actually pierced the corporate veil. Why do you have a corporation? You have a corporation so that you can hold yourself at arm's length from your business. If your business does something and it goes broke or injures somebody, the worst case scenario is, that it goes bankrupt. Meanwhile, your personal wealth and your personal, finances are not devastated. There will be an impact, and no one's going to say that, that's not going to impact your personal finances, but they're not going to come after your personal bank accounts and you're not gonna have to sell your house.
All of the things that happen when you're a sole proprietor and you have a serious problem. We always recommend that, one if you have a business that you put that business into a corporation, under the corporate name, this helps with your taxes as well. Talk to your tax guy about that. But, then that the insurance and the registration of the vehicle match so that when you are sued, they'll have to sue the corporation and you can say, here's my corporation. Oh Geez. Not a lot of assets in it. You take the insurance money and move on and they're not going to then be coming after you. Yeah, there's not going to be somebody sneaking around trying to figure out where your bank account is so they can garnish your income. So that's like a good place to start.
Start at your vehicle registration. Yeah. Start at your fleet for registration. This is important that the registration needs to match the insurance card. All the names in the, in the glove box on the pieces of paper need to be the same. With commercial business auto you get a little bit different coverage than a personal auto. One of them I have listed here just as a note for myself with some automatic coverage when you're getting a new auto. Okay. Moving an auto off correct? Yes. with personal auto policy, most of the time you, if you exchange a vehicle, you know, go down, buy a new one, you have 30 days, to let your insurance company know they just automatically pick it up. With a commercial policy, not so much. Pretty much you need to be letting your insurance agent know before you drive it off the lot.
Some companies, and his is not every company. Some companies do allow a certain amount of, um, time to advise the, in the insurance company. Some don't, ask your agent specifically about that. But as a rule of thumb, just because you have a commercial auto policy, don't think it's just like a personal auto policy. It's not. There are differences and that's a good one just to have in mind, anytime you buy a new vehicle; call your insurance company. Oh yeah, yeah. We always appreciate that. I can't tell you how often someone gives us a call and says, "Hey, I bought that new vehicle" when, "oh three months ago". Did you tell us? "No." We certainly appreciate the fact you didn't have an accident and that you've been driving uninsured for the last two months. And just going into that, this is the nitty gritty of, business, auto insurance or commercial auto insurance.
But for business auto insurance, we use symbols. If you look at your business auto insurance policy, you might see like a one or a three or seven or a five. I'm a numeric symbol that goes along with each vehicle. You know, those of you who would enjoy reading, an insurance policy. A commercial insurance policy will note that. Yeah. Symbol one means that we're going to cover any auto that you use in your business . Symbol two says we're only going to cover autos that you own. Three is oh only private passenger owned vehicles and a symbol five is personal injury protection for owned vehicles. I'm skipping forward cause we're running out of time here after the break. Okay. So again, one is any auto, it has like the most coverage. That means that they'll cover any auto on the policy. If you have that good. Two is only owned autos, right? So we gotta finish this up after the break. Yep. Alright, we're going to take a break but when we get back we'll continue our conversation on commercial auto insurance and you're listening to insurance talk with Rex Lesueur and Martinen from Bancorp insurance. To listen to the entire Podcast