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Started By
Message
Commercial vs private insurance for a work vehicle?
Posted on 2/3/20 at 7:12 am
Posted on 2/3/20 at 7:12 am
The construction company I am working for is undergoing a transition. My father in law owns the company and wants to get out and stay on as a free consultant if I need him. I haven’t decided if I’m going to continue as the company at the moment is in a bit of debt to start. Overall, it has machines that can be sold off to cover the debt if I don’t take the company.
Anyway, the question resolves around my truck. It’s a company vehicle that is covered by commercial insurance. He is going to sell me the truck for pennies regardless if I take the company or not.
The question is, with the cost of commercial insurance so high and the pay cut I’ll be taking to make the company profitable in the short term, can I get away with private insurance on the truck?
FYI I drive the truck to and from work that I have tools in. I also occasionally tow a double axle trailer that I have materials in, pipe, quikrete, etc.
Anyway, the question resolves around my truck. It’s a company vehicle that is covered by commercial insurance. He is going to sell me the truck for pennies regardless if I take the company or not.
The question is, with the cost of commercial insurance so high and the pay cut I’ll be taking to make the company profitable in the short term, can I get away with private insurance on the truck?
FYI I drive the truck to and from work that I have tools in. I also occasionally tow a double axle trailer that I have materials in, pipe, quikrete, etc.
This post was edited on 2/3/20 at 7:16 am
5
Posted on 2/3/20 at 9:16 am to Sheepdog1833
Your truck would be insured if owned under personal name and under personal insurance.
But you have no coverage for the company what so ever under your personal insurance. There would still need to be a master commercial insurance policy with hired and non owned coverage to insure the company's liability in an accident that they may be drawn into.
But you have no coverage for the company what so ever under your personal insurance. There would still need to be a master commercial insurance policy with hired and non owned coverage to insure the company's liability in an accident that they may be drawn into.
Posted on 2/3/20 at 9:34 am to Sheepdog1833
It sounds like the truck is not fabricated in any special way(welders truck, flat bed, etc.) it just carries tools. If so, you can insure the truck under a "private" policy with any carrier (progressive, all state, state farm, etc.) and list the "use" as business instead of personal to cover all basis. Just make sure the registered owner (see registration) is list as the named insured, whether that be an individual or a business.
Posted on 2/3/20 at 2:27 pm to Chad504boy
listen to chad on this one
Posted on 2/4/20 at 12:13 pm to Sheepdog1833
All of what Chad said is accurate. I'll just add that if its not a regular pickup truck and is one of those versions that are designed specifically for commercial use (ie flatbed or something like the pic below) then you don't even have the option to insure it on a personal insurance policy
Posted on 2/5/20 at 8:36 am to Sheepdog1833
The important question IMO is are you just using the Truck to haul yourself and minor supplies between job sites, or are you using it as a business. If you are hauling materials to a buyer, for example, I'd absolutely go commercial. If you are just in say residential construction, not as big of a deal to do private insurance IMO.
The major issue with private over commercial is you are the only one that will be covered and you aren't supposed to be hauling 3rd party materials in my limited experience.
The major issue with private over commercial is you are the only one that will be covered and you aren't supposed to be hauling 3rd party materials in my limited experience.
Posted on 2/7/20 at 7:39 am to Sheepdog1833
Not an insurance expert here, but unfortunately have a little bit of life experience.
My 2 cents:
The risk of insuring it with personal insurance is obvious. Damage caused while performing work functions risks your personal wealth.
The risk of causing damage while using it for personal use risks the security and premiums of your commercial insurance. Will your business suffer greatly if you're unable to secure commercial auto insurance?
Weigh these factors. Either way, get plenty of coverage. The billboard lawyers are counting on you.
If still in doubt, just insure it under which ever one you use it the "most."
My 2 cents:
The risk of insuring it with personal insurance is obvious. Damage caused while performing work functions risks your personal wealth.
The risk of causing damage while using it for personal use risks the security and premiums of your commercial insurance. Will your business suffer greatly if you're unable to secure commercial auto insurance?
Weigh these factors. Either way, get plenty of coverage. The billboard lawyers are counting on you.
If still in doubt, just insure it under which ever one you use it the "most."
Posted on 2/7/20 at 8:26 am to Grassy1
My work vehicle that only I currently drive has almost the same commercial premiums as my private vehicle. Given I'm in Florida. But is OP the only one that drives it?
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