Do you drive a vehicle as part of your course of business? In that case, you’ll likely need commercial auto insurance. And, whenever you get behind the wheel, the rules of the road will still apply. If you commit a serious driving offense, like driving under the influence (DUI), you’ll face consequences. And, as a result, your insurance rates might climb. Why will this occur?
Commercial auto insurance doesn’t just apply to business driving. It might apply to personal vehicle use as well. So, whether you commit a DUI on personal or official business, your insurance might suffer.
How does commercial auto insurance work?
Let’s say you are a real estate agent. You travel to show houses, deliver products and make sales. In these cases, your personal car will likely see a lot of use.
When you drive for work, you’ll involve your business’s reputation and assets. A loss of the vehicle, or harm you cause to another driver, might call your commercial reputation into question. You might have to pay to repair your own damage, or even compensate others for their own losses. That’s where your auto insurance can help.
Yet, most personal auto policies don't cover claims that arise when you drive on official business. Therefore, you’ll likely need to enroll in commercial auto coverage if you plan to use this vehicle for work. The policy will cover many of the same losses as a personal policy. Still, the limits and certain coverage will apply to the business’s interest in the vehicle. Neither party will suffer unfairly following an unavoidable accident.
Coverage Accounting for DUIs
Your commercial auto coverage will likely work during both personal and official use. It will also contain critical information about your actions as a driver. Therefore, it will face influence from the mistakes you might make at any time. This could include DUI charges.
DUIs are extremely serious infractions. Therefore, anyone caught in the act will likely face a variety of penalties. While your policy will likely address damage you cause during a DUI, it will likely penalize you as well.
The DUI will represent a significant increase in the risks you pose to others on the road. So, it will also demonstrate risk to your insurer. It will show them that you have a greater chance of filing a claim on your policy. As a result, your insurer might have to raise your commercial auto coverage costs to cover the risks. They might even cancel your coverage altogether.
All in all, as a professional, you should strive to avoid DUI charges. By doing so, you’ll lessen the risk that your commercial auto insurance will face challenges because of this problem.