The guide to commercial and business auto insurance

Commercial auto insurance is not reserved for delivery trucks and heavy vehicles. Some personal vehicles fall into that category, and their owners have everything to gain by knowing it.

What counts as a commercial or business vehicle?

A commercial vehicle is one used in a business context: a heavy vehicle, a delivery vehicle, a service vehicle, a truck, but also, in many cases, your personal vehicle.

Self-employed: your car may already be commercial

If you work for yourself and travel with your vehicle, it is considered a commercial vehicle and can be insured as one. That entitles you to several deductions tied to its use: distance driven, part of your registration fees, and parking costs, among others.

If your personal vehicle sees a lot of work use, commercial auto insurance protects you properly: a personal policy could deny a claim that arose in a business context.

Employee with a vehicle provided

If your employer provides a vehicle (a plumber’s truck, a delivery car), you save the wear and tear on your own vehicle, and both maintenance and fuel fall to the employer, unless agreed otherwise.

Registration: what changes

The process resembles the one for an individual, but a director of the business (or someone mandated to act) must be present to register the vehicle.

For a new commercial vehicle, the buyer has to present the two SAAQ forms provided by the dealer, issued under their official French names: Attestation de transaction avec un commerçant (dealer transaction certificate) and Description du véhicule neuf (new vehicle description). For a used vehicle, the documents vary with the seller (dealer, private individual or business): check the SAAQ website.

Financing a commercial vehicle

Several institutions offer commercial car credit, including for several vehicles at once, which is handy for a fleet. As with a personal loan, approval takes your credit score into account, and it is worth gathering the financing documents in advance.

The advantages: competitive rates, fixed and variable, and amortization periods of up to 96 months depending on the institution.

Where to be careful: if the financing goes through the seller or an outside finance company (especially for equipment), rates climb. Always compare your financing to get the best rate.

At Beaucage Auto Credit, we are the lender: we assess your file ourselves and match the rate and terms to your situation, including for your commercial vehicles. Talk to an advisor.

Tax deductions

A self-employed person who uses their vehicle for work can deduct, in proportion to business use:

• Licence fees;
• The registration fee;
• Insurance premiums;
• Loan interest tied to the purchase;
• Maintenance and repairs;
• Leasing costs.

Depending on the price of the vehicle, a ceiling may limit the deductible amount. A tax specialist will help you maximize your deductions and avoid the traps.

Commercial insurance is worth shopping around

Insurers offer a range of products built for businesses: multi-vehicle discounts, reductions for combining business and vehicle coverage, and rebates for hybrid or electric vehicles.

The gaps between insurers can reach hundreds, even thousands of dollars. A commercial insurance broker will help you track down the best policy for your needs.

To buy a vehicle in your business’s name with advantageous financing, apply online or call our advisors.