Most car owners are already familiar with vehicle warranties for their car or truck. While these warranties apply primarily to personal-use vehicles, warranties are also available for commercial-use vehicles. What are the differences between personal and commercial vehicle warranties?
Who Needs a Commercial Vehicle Warranty?
If you use a car or truck as part of your business, it should already be classified as a commercial-use vehicle. This is especially true if this vehicle is driven by any of your employees. If an employee uses their personal vehicle to serve your business, it's wise to upgrade them to a commercial vehicle insurance policy. Otherwise, if that employee causes an accident that results in an injury or the damage of property, under the law, you (as the relevant employer) may be held liable.
When purchasing a new vehicle, you may wish to upgrade to a commercial vehicle warranty from the manufacturer or dealer.
Commercial Vehicle Warranty Specifications
The specifications of a commercial vehicle warranty will be a bit different than those applied to a personal vehicle. That doesn't necessarily mean more expensive, though there will be quite a bit of fine print associated with your commercial vehicle warranty. These warranties tend to be influenced by a lot of factors, such as:
Most warranties will have mileage limitations. Check to see if there are larger mileage options available, especially if you intend to rack up the miles using your vehicle as part of a delivery or service industry.
Frequency of Use
How often do you plan on using your vehicle? Not only does mileage matter, but the more often you use your car or truck, the more wear and tear it will have. This may influence the options available for your commercial warranty.
If you intend to use your vehicle as something of a "company car," then you should be sure that your warranty covers not only yourself but any employee that gets behind the wheel. In other words, if an employee damages a component of the vehicle, you need to ensure that your warranty covers damage caused by drivers other than the owner.
This is where it can get confusing. Personal vehicle warranties are typically comprehensive in nature (covering the drivetrain as a whole, for example). But it's not unusual for commercial vehicle warranties to specify which parts are covered under the warranty. Typically, this list includes the parts that most commonly wear out.
There's good news and bad news to this. The good news is that if a covered part damages a non-covered part, the non-covered part is typically covered under most service plans. The bad news is that if a non-covered part damages a covered part, your warranty will only pay for the covered part.
Warranty options exist for commercial use vehicles, but their application is restricted to the specific purposes of your business, and they tend to cover a narrower range of parts. Still, they remain a valuable part of any business owner's financial plan. To get started, here is more information about the Ford Protect warranty options, as well as Mopar Vehicle Protection plans.