Insurers classify commercial vehicles several ways. Each method of classification affects the rate charged. When an insurance underwriter has any doubts about which classification to use, they almost always use the more expensive one. You may be able to save money by correctly classifying your vehicles’ use. The three primary classifications used are retail, commercial and service. The retail classification usually produces the highest rates, while the service rating usually produces the lowest. Retail use is for deliveries to and from individual households. Service use is incidental use of the vehicle in your business, such as a contractor’s truck used to haul tools, etc. Commercial use is all other uses. One common classification error is to list vehicles as commercial use, when in reality they would qualify for the service classification. Another common mistake is not changing the classification when the vehicle is taken out of service for its regular use. An example would be a case in which a retail delivery vehicle is retired from delivery routes, but still used for other commercial purposes, such as hauling around the plant facility or storage yard. Give us a call. We will assist you in making sure that you use the correct and most cost-effective classification allowed for your commercial vehicles’ use.