Personal vs Commercial Auto Insurance

Thanks to the ever-changing economy, many people nowadays work more than one job. And because of this, a lots of them using their vehicles for work. It is for this reason that the thin line between personal and commercial auto insurance gets blurred. Most car owners who use their vehicles each and every day as they go about their work do not know whether to get personal auto insurance or commercial auto insurance. So, which of the two should you go for? Let’s see if we can shed some light on that.

Commercial auto insurance

Commercial auto insurance covers any and all vehicles that are used to operate a business. It is designed for anyone who uses a vehicle to conduct their business. For example, if you use your vehicle to deliver pizzas or you are a subcontractor who uses your vehicle to deliver certain products to clients, then you are liable for a commercial auto insurance.

Commercial auto insurance typically covers more risks as compared to personal auto insurance. However, they do not necessarily require larger premiums.

Personal Auto Insurance

Personal auto insurance typically covers vehicles that are used for personal use. For example, if you use your vehicle to get to your office for work, then a personal auto insurance could be all you need. However, if you are constantly using your personal car for work-related tasks, driving to work sites or visiting a variety of stores to advertise your company’s products or example, you are better off with a commercial auto insurance policy.

Determining whether you need a commercial or a personal auto insurance coverage can be quite difficult. If you are not sure what policy to go for, here are a few points you can use to help you out:

  • Who owns the vehicle?

If the vehicle is owned by the company, then a commercial auto insurance is needed. However, if you are the sole owner of the vehicle, you may not need commercial coverage.

  • How do you use the vehicle?

If the vehicle is frequently used for business-related tasks, you will have to get a commercial auto insurance coverage. However, if you only occasionally use the vehicle or use it to commute to work, you will only need a personal auto insurance.

  • Liability limits

What are the liability limits on your business? Commercial auto insurance policies tend to have higher liability limits. Should the business vehicle require higher liability limits, it is best to get a commercial auto insurance.

In general, if you use your vehicle to transport products or goods, people, or constantly have some special work-related goods in your car, then you will need commercial auto insurance coverage. If you lease your vehicle or let your employees drive it for work, you should also get a commercial auto insurance policy.

If you are not sure what policy to get, don’t worry. Reach out to us to learn more about personal and commercial coverage and which one will be the best for you.

Leave a Reply