Auto insurance is a necessity when driving. It provides protection and coverage for damages caused by an accident. If an accident occurs, the damages can easily reach into the thousands or further, depending on any injuries that have occurred. Usually, the person at fault is responsible for these costs. However, the average person cannot easily afford such costs. These costs can pose serious financial burdens for the person responsible. If the person responsible is unable to pay immediately, the costs can often fall on the damaged party. Although they have a claim to the money from the person at fault, medical bills and vehicle repairs will need paid sooner.
This is where insurance benefits all drivers. These costs can be covered by the insurance provider. If the person at fault is uninsured and unable to pay out of pocket, the injured party can make a claim against their insurance policy to cover immediate costs. From there, their insurance company can seek repayment from the party at fault. Most personal auto insurance can cover these accidents. However, if you use your vehicle for any commercial use, Commercial Auto Insurance in Chicago IL is necessary.
If an accident occurs and your vehicle is used for any commercial reasons, your personal insurance may not cover the accident. This can be true even if you were using the vehicle for personal reasons at the time of the accident. Personal auto insurance policies are written to provide the best coverage and factor the risks of the average personal driver. Commercial vehicles often fall outside of this scope. Vehicles that are used for commercial purposes have specific risks and coverage that only pertain to this type of vehicle.
A vehicle that is used for commercial use is required to have commercial auto insurance. This is true, even if, you only use it part time for commercial use. For example, a pizza delivery driver that uses his own vehicle for work, also uses this vehicle for personal use, would still need commercial insurance. Any accident he incurs may not be covered by personal insurance, even if he was not working at the time of the accident. For more information about commercial auto insurance, you can visit Business Name.
