The Absolute Necessity of Commercial Auto Insurance in San Jose, California

by | Sep 12, 2017 | Insurance

Often, businesses may look at the cost paid for private vehicle insurance as opposed to Commercial Auto Insurance in San Jose and think that having a private insurance policy is a good way to save a bit of money. Unfortunately, there are many drawbacks to approaching commercial auto insurance in this method. Not only is it dishonest, but it can have serious repercussions.

Multiple Driver Coverage

The first thing to understand is that private vehicle insurance and commercial auto insurance will likely have some of the same types of coverage. The amount of coverage is what is important.

For example, liability coverage is more expensive for a commercial auto insurance and for good reason. Because multiple individuals may drive a particular vehicle as opposed to only one or two people driving a private vehicle, the possibility of accidents increases, meaning liability coverage is going to be higher.

Added Coverage for Increased Vehicle Contents

What also has to be taken into account are any items that are inside of a work vehicle. For example, if a business delivers products, not only will the insurance policy on the vehicle cover the vehicle itself, but it will also have to cover the items inside of the vehicle.

Whether it’s a delivery vehicle, a service vehicle that has replacement parts and tools or it’s a technical vehicle with monitoring equipment, higher levels of insurance will be needed. That insurance will cover the loss of equipment, whether it’s through an accident or through an act of theft.

Wasting Money

Trying to use private vehicle insurance as opposed to dedicated Commercial Auto Insurance in San Jose means that if an accident happens or if equipment or delivery items were stolen out of the vehicle, claiming with this insurance may mean nothing. The insurance policy will not cover some of the extenuating claims made. On top of that, the amount of money a business may have paid in premiums would be useless.

Having the right insurance for a commercial fleet of vehicles is essential. That’s why you’ll need to know what this policy covers and to look for potential ways to make it more affordable. If that is where your business is at currently, checking out a website like is a good first step to affordable and effective commercial auto insurance coverage.

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