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Why should a contractor have a commercial auto policy?

If you’re a contractor who drives a normal size truck for work like a Ford F-150 or a GMC Sierra, for example, you probably don’t see a need for that truck to be on a commercial auto policy when you can have it on your personal auto policy. 

That makes sense, until it doesn’t. When you look at typically limits on personal auto policies, they are usually a lot lower than those limits on commercial auto policies. The Tennessee state minimum limit requirements are only $25,000 per injury, $25,000 per property damage, and $50,000 per accident. Those amounts do not go far when it comes to accidents! 

We always recommend a combined limit of 1 million on commercial auto policies. This ensures that you aren’t responsible out of pocket for expenses related to an accident! 

So, are you going to pay more for that policy? The simple answer is yes. You have a lot more coverage so you will pay more. That is still a better option than having to come up with money or be in debt due to not having high enough limits. 

Nobody wants to think about having a catastrophic accident that seriously injures another person or causes a huge amount of damage but they do happen sometimes! We need to be as prepared as possible! 

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