Commercial Auto Insurance and Your Real Estate Business

Real estate agents spend a lot of time in their vehicles. You visit property after property, meet with clients and even drive your potential buyers from one home to another. Because of these reasons, it is necessary that you obtain commercial auto insurance. Otherwise, your vehicle could be at risk should you be involved in some type of accident. Imagine what would happen if your vehicle broke down. Would you be able to get to and from appointments?

In many cases, real estate agents can use their personal vehicles as a part of their business. As a self-employed individual, this is generally not a problem. However, business insurance is still advisable. You should not rely on a traditional personal auto insurance plan to be enough to cover all of your needs and to reduce all of your risks.

But commercial auto insurance may be a better choice. If you are involved in an accident, you may be held responsible for a significant amount of damage and even medical bills. As a result, any work-related motor vehicle accident can cost you a great deal of money. Upgrading to a commercial auto insurance policy can provide a higher level of coverage.

To determine if you need commercial auto insurance, consider the following:

• Does your personal auto insurance cover your business while driving?
  
  
• Does your existing personal auto insurance policy meet your liability needs?
  
  
• If you drive clients around, you may be better off with a higher level of liability coverage.
  
  
• If you drive your vehicle routinely for real estate needs, a commercial auto insurance policy can provide a higher level of protection because personal policies may not apply for regular business use.
  
  
• What type of vehicle do you use? Some policies will tell you what types of vehicles are covered for business purposes and which do not.

With the right type of business insurance for your vehicle, you can rest assured that your car and your business as a real estate agent is amply protected. Without the right level of coverage, you may put your business on the line should an incident occur.