Because of the area we live in, we get a lot of questions about hauling Amish for hire. Often a client comes in to review their personal auto Insurance policy, casually mentioning that they haul Amish. They soon discover personal auto insurance policies do no cover this type of activity since it is a business activity.
Personal auto insurance policies cover an individual driving their personal vehicle for personal use. Driving your vehicle for work or when you are getting paid in a “vehicle for hire” or “taxi service” situation, you open yourself up to a different set of liability risks. These different liability risks are rated differently and are not covered in the personal auto policy.
A commercial auto policy specifically covers liability risks associated with driving a vehicle for hire. This policy will provide coverage for:
- Your vehicle
- The “other” vehicle (if in an at-fault accident with another vehicle)
- Your passengers
- Liability if there is litigation after the accident
The state set minimum liability limits of $1.5 million for commercial vehicles. If you purchase a commercial auto policy at Hummel Group, your policy is automatically set to meet that liability limit. Your personal auto policies limits are often lower and would not meet this requirement and chances are an umbrella would also need to be purchased to meet this limit. Keep in mind, even if you meet this limit, because of the exclusions on the personal auto policy, there is still no coverage.
If you own one vehicle and use it for commercial use, you can replace your personal policy with the commercial policy – there is no need to carry two policies. If you have two vehicles and are using them both part time for commercial use, we recommend dedicating one vehicle for all commercial use.
If you do this, you only need to move one vehicle to your commercial policy. Since commercial policies are more expensive, this can save you money over time. If you continue to use both vehicles commercially, they would both need to be moved to the commercial policy. Have more questions about your Amish taxi policy or for-hire vehicle? Give us a call at 800-860-1060 or click the botton below to contact us and request a quote.