Commercial auto insurance is very much different from conventional private or personal use auto insurance. The insurance rates are usually much higher for commercial auto insurance plans.
This is because commercial vehicles are generally more rigorously used than private vehicles. The owners of commercial vehicles will not usually like to give the vehicle a break for a long period. This is because the vehicle is an investment and any idle time will only reduce their profit margins.
But a lot of commercial operations are seasonal. And hence the vehicles will not be used as much as they would be when in full use. Business is never constant, it depends on a number of external factors and your expenses need to move in tandem with the fluctuations in your income. Hence it is important to have variable commercial auto insurance.
Lawn mowers, snow plowers, ice cream trucks, vacation rental vehicles etc fall under the seasonal use category. You will obviously not want your lawn mowed during winter, or you would not need a snow plough in summer. People do not normally eat ice cream when there’s a blizzard out there and there will not be many vacationers during work days.
Hence it is only right that you do not pay full insurance when your vehicle is not in use, because it would be an idle waste. Why cannot one completely remove the insurance policy?
You cannot completely nullify your insurance policy during the off season because you will have to pay a lot more to get a new insurance policy once your season starts. A lot of auto insurance companies will want proof of insurance in order to provide you a new insurance policy. And a few companies will not even entertain you if you do not have an existing auto insurance policy. There are very few companies which will actually provide insurance for people without insurance. And also the department of motor vehicles (DMV) keeps a tab on all registered vehicles and will blacklist your vehicle as soon as it finds out that you do not have insurance coverage.
So would it not be a waste to pay for your auto insurance when you are not utilizing your vehicle?
Yes it definitely would be. But you can ask your insurance company to reduce the premium during the dry months. You can provide proof of non use by asking the agent to keep a tab on the mileage run during the off season. If you are going to be using your vehicle for personal use, you can let your company know. Again, they will reduce the rates for personal use.
It is not only a requirement to have your vehicle insured all year round; it is also a good practice. Your vehicle may be parked during the off season, but it is still susceptible to acts of vandalism, theft, etc. it can also be damaged due to fires and other natural disasters like floods, earthquakes, tornadoes etc. why, even a branch from a tree can fall and damage your car extensively. Hence it’s always prudent to be covered with auto insurance at all times.
Talk to your local auto insurance agent and try to get a policy which is tailor made for your needs. They will in all probability be willing to discuss your options with you and make a deal that is best suited to your business and personal needs.
