Understanding why you need auto insurance on your personal vehicle is easy. You want to protect your loved ones and your property and also it is required by law in State of California. Knowing when you need commercial insurance is a completely different matter. There are certain types of vehicle usage that are not covered under a personal auto policy. If you use a vehicle solely for the business then you need commercial vehicle insurance. Also, if your vehicle has commercial tags on it you should get a commercial policy for it. If you does not insure your business the same way you insure your house, then why insure your business vehicles the same way you insure your personal autos?

 

All contractors needs Commercial Auto Coverage if you or your employees will use titled vehicles in their personal name then commercial coverage is not necessary and your personal auto policy will cover the auto.  this is not true.