Choosing An Insurance Classification

In many states it is illegal to drive a vehicle without the proper insurance. The reason for this law is because of the mass usage of automobiles by people for work, travel, and leisure. Accidents happen every single day on the road and without proper insurance, the financial burden it puts on an individual can be insurmountable. There are different types of auto insurance for different vehicles and a potential buyer should be aware of which category their vehicle falls under. Let’s look at a few different vehicle types and which category of insurance they belong to.

For vehicles like the common four wheel sedan, your standard auto insurance is necessary to be able to drive the vehicle on the road. Because sedans are common vehicles, the insurance rates are usually judged by the age and mileage of the make as well as the experience of the driver. Also if the vehicle has a history of recalls or vehicular malfunctions, expect higher rates.

Trucks, regardless of size, also require insurance. Depending on the load capacity and the function of the truck the class of insurance will be dictated differently. If the vehicle is a small truck with four wheels, a standard auto insurance policy will suffice. Smaller trucks usually have similar rates to regular cars and sedans. If a truck is larger, such as the six wheel variety, expect higher rates because of the high price of the vehicle.

If your truck is used for business such as an 18-wheeler or food truck, you will need to seek a different insurance from the standard auto insurance. This class of insurance is called commercial insurance and is used for vehicles that are the property of a business. Rates will vary based on the needs and use of each vehicle such as travel distance, make, model, and the work being done.

Vans are very similar to trucks in that depending on their size and function, auto insurance rates and classes will change. If the van is used strictly for personal use such as traveling from point A to point B, the van will usually fall under the standard auto insurance. However, if the van is used specifically for your business then commercial insurance is the better option. Not having commercial insurance on a vehicle used for work can lead to complications when filing a claim if there is an accident later.

Boating insurance rates again, depend on the size and function of the boat. Small boats will yield lower rates, while larger more complex vessels will require more funds. If the boat is used specifically for fishing or other business, commercial marine insurance should be in effect.

Motorcycles have their own class of insurance, and like sedans are not affected by their size but rather their make, model, age and mileage. The only exception to this is the scooter, which is different from motorcycles but provide a similar function. Some companies will classify a scooter under motorcycle insurance, while others classify scooters separately under their own class of insurance.

If you’re considering buying any of the above insurance policies, we recommend using an insurance broker such as One Sure Insurance or Howden.