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 Don't Get Stuck Paying More: Know the Difference Between Commercial and Private Van Insurance

Don't Get Stuck Paying More: Know the Difference Between Commercial and Private Van Insurance

 Don't Get Stuck Paying More: Know the Difference Between Commercial and Private Van Insurance


If you’re driving around in a commercial van, it’s imperative that you have the right insurance for it to avoid any legal trouble or paying out of pocket. Unfortunately, this kind of coverage isn’t mandatory, so many drivers don’t buy into it until something goes wrong and they need help. As the saying goes, better to be safe than sorry! By getting your van insured properly, you’ll know that your business can continue to run smoothly, even in the case of an accident or an insurance snafu.


What's the difference between commercial and private van insurance?

If you're driving a commercial vehicle, then you are required to have a commercial insurance policy. However, if you're driving a private vehicle for personal use, then you are required to have an auto insurance policy. All states require that drivers carry some type of liability coverage for damages they cause in an accident. 

For example, if your car is hit by someone else's car in a rear-end collision and it's found that your driver was not at fault for the accident, then their car insurance will cover any damages incurred. The amount of insurance coverage varies from state to state but is typically set at $25,000 per person involved in the accident or $50,000 total per accident. 

You can also choose different types of coverage like uninsured motorist protection (UM) and underinsured motorist protection (UIM). UM helps pay for expenses when you've been injured in a car accident with another driver who does not have enough insurance to cover your medical bills, while UIM covers expenses when the other driver doesn't even have any insurance at all. But what about property damage? That's where comprehensive and collision coverage comes in. 

If your van is used commercially, then you may want to invest in more extensive coverage like this. On the other hand, if you're only using your van for personal purposes, there may be no need for these extra protections depending on how often you drive it and how much value you put on protecting its contents - unless you plan on renting out space inside the van to store things as well. But what about rental cars? Rental car companies offer rental insurance options which might be worth considering if needed - after all, nobody wants to end up paying for an accident that wasn't their fault!


Which one do I need?

Do I need commercial or private van insurance? It's a common question, but it has a complicated answer. 

There are actually three ways to insure your van, so you have to do some homework first to figure out which one is right for you. 

The first option is called non-owned auto insurance, which covers people who don't own a vehicle but use their own car for work purposes. This type of coverage only protects the driver while they are working and doesn't cover the car itself. 

This can be an affordable option if you only use your vehicle occasionally for work purposes, but it might not be worth it if you drive your car more often or depend on it for income. 

The second option is called fleet liability which covers vehicles that are owned by companies. If you're a business owner, this might be the best option for you because it provides the most comprehensive coverage at an affordable price. 

However, if you're just driving for Uber or Lyft as a side gig and your main mode of transportation is public transit then it's probably not necessary. The third option is called leasehold motor insurance which covers drivers when they are leasing cars from dealerships. 

Like non-owned auto insurance, this will only protect drivers when they're using their vehicle in order to conduct business; however, unlike with non-owned auto insurance, leaseholders must also purchase collision damage coverage. 

So what should you do? Talk to your employer about what kind of policy they offer and ask them how often you'll be driving your van. You'll need a different policy depending on whether you'll be driving less than 5,000 miles per year or over 5,000 miles per year. 

Your employer may provide free coverage if they allow employees to use personal vehicles for work purposes. Or go ahead and get a quote on both types of policies before deciding anything!

How much does each type of insurance cost?

Commercial van insurance tends to be more expensive than private van coverage. This is because commercial vans are often used in a business that carries a high risk of injury, collision, or property damage. 

On average, commercial van insurance can cost up to $7,000 per year depending on your vehicle's size and where you live. 

That is why many businesses opt for private van coverage instead. However, if you do have a commercial driver's license or operate your business through your personal vehicle, it may make sense to get commercial insurance.

Private van coverage can cost anywhere from $1,500-$2,500 per year depending on your location and vehicle size. 

However, there are some states that only require private van insurance if the van is being used as a taxi or bus so check with your state to find out what applies to you! 

What kind of insurance am I looking for?: Depending on your needs, you will want to know whether you need commercial or private van insurance. While they both offer protection against accidents and collisions, they provide different levels of coverage. 

Commercial policies typically cover liability costs in addition to accident-related costs while private policies only cover accident-related costs. 

If someone else is driving the van, then you'll need an umbrella policy which covers both yourself (or other drivers) as well as the company paying for your transportation services. Umbrella policies start at about $100 per month and add about $150 of liability coverage. 

Some people also invest in living wages insurance to protect themselves from an underinsured party, this starts at around $125 and goes up depending on how much you're willing to spend. 

It can really save your behind when something does happen. But don't worry - if all you need is cheap van insurance, then feel free to skip these other features ;)

If you decide commercial van insurance is best for your business or individual situation, take a look at Covermyvan which offers both cheap rates as well as easy-to-read quotes - plus lots of resources for new entrepreneurs like buying a tow truck :) 

Phew! The answer wasn't simple after all ;)

What are the benefits of each type of insurance?

If you own a business, you need to know that there are two types of van insurance. These are private van insurance and commercial van insurance. 

While they might seem similar, there are some differences between them. In this blog post, we'll explore those differences so that you can make an informed decision about which type of insurance is right for your business. 

Private Van Insurance 

In order to be eligible for private van insurance in most states, your vehicle must be used primarily for personal purposes (such as commuting) and less than half of its use must be for business purposes.

Essentially, it is meant to protect drivers when their car breaks down or gets stolen due to a covered event such as collision or theft. The costs associated with repairs may also be covered by the plan.

Commercial Van Insurance 

On the other hand, if you operate a company that uses vans on a regular basis then you will want to purchase commercial van insurance instead. 

With this kind of policy, any person driving your vehicles who carries out duties related to transporting goods or passengers will be insured under this plan. Plus, with the added protection offered by commercial coverage, you won't have to worry about paying higher premiums should an employee drive recklessly.

If you think that your needs are better suited for either private or commercial coverage, contact one of our experts at 1-844-387-4241 and we'll help get you taken care of!

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