Commercial Auto Insurance

What is Commercial Auto Insurance?

A commercial vehicle is any type of motor vehicle used for transporting goods or paying passengers. The European Union defines a "commercial motor vehicle" as any motorized road vehicle, that by its type of construction and equipment is designed for, and capable of transporting, whether for payment or not:  more than nine persons, including the driver; goods and "standard fuel tanks". This means the tanks permanently fixed by the manufacturer to all motor vehicles of the same type as the vehicle in question and whose permanent fitting lets fuel be used directly, both for propulsion and, where appropriate, to power a refrigeration system. Gas tanks fitted to motor vehicles for the direct use of diesel as a fuel are considered standard fuel tanks.

​Classification

In the United States a vehicle is designated “commercial” when it is titled or registered to a company. This is a broad definition, as commercial vehicles may be fleet vehicles, company cars, or other vehicles used for business. Vehicles that are designed to carry more than 15 passengers are considered a commercial vehicle.

A vehicle may be considered a commercial vehicle if it:
  • Belongs to a company or corporation
  • Is used for business, but is in an individual's name, such as a sole proprietor
  • Is a leased vehicle and in the name of the financial institution that owns it
  • Exceeds a certain weight or class and therefore, is "classified" as commercial even though it may not be commercially used or commercially owned. A weight rating of 26,001 pounds or more is always considered commercial
  • Is used to haul any hazardous material
A vehicle can be used for a business, if not exclusively, and remain privately licensed, depending on the amount of time used for business.
(800) 264-4637​
3478 Buskirk Avenue
Suite 1000
Pleasant Hill, CA 94523-4344
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