What is the Difference Between Business Use and Personal Use for My Vehicle?

The dividing line between personal use and commercial vehicles can be confusing. It’s important to know what the requirement are here in Alabama, and it’s doubly important to be sure you have the correct registration and the right insurance for your needs.

Veazey Insurance Agency offers superior commercial coverage at competitive prices in Mobile, Alabama and surrounding areas. Our agents can analyze your business’s unique needs and ensure you have the coverage you need.

Some vehicles are easy to distinguish. Obviously, truck and trailer combinations over 26,001 pounds are considered commercial vehicles (10,000 pounds if you use the vehicle to cross state lines). What about smaller vehicles, such as vans and pickup trucks? In Alabama, the key is in the intended use.

For example, you have a big Ford pickup truck and trailer that you use to carry your dirt bikes out to the trail on Saturdays. This is not a commercial use of the vehicle. However, when the same vehicle and trailer are used to haul tractor parts to repair shops five days a week, this is considered commercial use. You will need to check with the DMV to determine your license and tag requirements, and you will need commercial insurance coverage.

What about using your light truck for business? If you carry only a personal auto insurance policy, it might provide coverage to your vehicle in the event of a collision, but it will not cover the $30,000 load of parts and tools you’re carrying in your trailer. For that you need commercial insurance.

You may need commercial insurance for the following reasons:

  • You use your vehicle to conduct a service, or transport goods or people for profit
  • You tow a trailer to conduct business or carry a considerable weight in tools and equipment
  • You let employees drive your vehicle, or vehicle ownership is registered to a corporation or partnership

Protect your assets. Be very careful about the level of liability insurance you carry for any work-related vehicle. Sure, you might carry enough to satisfy the limits of the law, but if you or your employees cause serious injury of property damage in an accident, you could be sued into bankruptcy without adequate liability coverage.

Does your vehicle have special equipment that was not installed by the manufacturer? This could include pickup covers, toolboxes, powered lift gates, winches, and other equipment. Ask us about coverage for custom equipment.

At Veazey Insurance Agency, we provide coverage for all manner of commercial vehicles. We insure:

  • Passenger vans
  • Work vans
  • Dump trucks
  • Repair trucks
  • Tow trucks
  • Fleet autos
  • Moving vans/trucks
  • Delivery vehicles
  • Vehicle transport trailers
  • Commercial farm equipment
  • Lawn maintenance and landscaping trucks and equipment

Keep in mind that no two commercial vehicle policies are alike. Your needs will differ depending on your type and size of business. For example, if you are a one-man grading business, with a flatbed truck, a Bobcat, and a track hoe, your insurance needs are not equal to a grader who owns a fleet of 15 trucks. Your independent agent at Veazey Insurance Agency will sit down with you, assess your needs and level of exposure, and find the right type of commercial vehicle insurance that’s right for your business.

Think of us as your trusted business advisor. We want to help you pick the right tools for success. At Veazey Insurance Agency, we’ve got you covered!