GREENITUP said:
I am currently covered with liability insurance for a personal vehicle that I want to exclusively use as a business / work truck very soon. I got a quote for "business auto insurance" from my carrier (Allstate) for like $650/yr.. I currently pay about $150/year for the same coverage under a multi vehicle plan. I am the sole owner/operator of a LLC - thus taxed as a sole proprietor. If I'm the only driver, can I just keep the same policy or do the rules change once you put a sign on the side of the truck? Anyone been in this situation? Thanks
Well some of what you said is confusing. First your coverage for business auto insurance is much different. I was a licensed insurance agent for a few years.
Last year when I went to get business auto insurance I had regular auto insurance on the van. It was almost $700.00 a year. I think it was $40,000.00 liability and $10,000.00 medical up to $20,000 per incident.
My business insurance is 1 million liability $500,000.00 medical $250,000.00 comp. I may be off on the medical and comp but I know it was 1 million liability and 500,000.00 but I cant remember at this moment with out getting the policy out exactly what the break down was.
Any way I only played $550.00 a year for that business coverage. It was cheaper and a lot and I mean a lot more coverage.
I bet if you compare the actual coverage of your business insurance that it is much more coverage.
I dont think you are doing an apple to apples comparison.
There are different laws as to the type of coverage a business vehicle must carry. But they are not priced even close to the same as an individuals insurance. Really you get hundreds of times more coverage, multiple drivers and less cost per unit of coverage with commercial auto coverage.
Most commercial contracts require you to carry coverage and one I bid on the required coverage was 2 times what I already carried. My total workmans comp and liability and auto insurance last year for a janitorial and landscape maintenance yard care company was around $1,800.00
If any one desires I will pull out the policy and show the breakdown and pricing for the coverage I have. Yes I know that different states have different insurance laws and different coverages. Most insurance coverage is close to the same in different states.
All the insurance commissioners meet and discuss the industry and keep every thing about the same. There are just some miner law differences.
Oh and also your tax consequences and sole proprietorship has nothing to do with you insurance. Maybe some differences if you know you will not be having any employee drivers but they expect that even if you say that there will not be any other drivers that there will be and the price is not any different, it is a business and expected. If you are to have an employee who will be driving you just call and give them his information and that is it. There is not a change in premium.