Commercial Auto vs. Personal Auto Insurance
Choosing the right insurance policy for your vehicle is based on more than just what type of vehicle you have. The purpose of your vehicle is also an important part of your choice. A car used for every day, personal use has needs different insurance policies than the vehicle you use in your business. When reviewing your options and situation, it becomes clearer whether you need commercial or personal auto insurance.
What Is Commercial Auto Insurance?
Commercial auto insurance covers vehicles that are used when operating a business. Business vehicles can involve additional risks and may carry different equipment which may be covered with the help of commercial auto insurance.
Commercial auto insurance can cover vehicles that transport employees and equipment including:
- company cars
- delivery vehicles
- service vans & trucks
Commercial auto policies can provide liability and damage coverage while also accounting for risks that come with operating a business.
What Is Personal Auto Insurance?
Personal auto insurance is generally created to cover vehicles that are used for personal, everyday use. A personal auto policy may include liability, collision, comprehensive, uninsured motorist coverage, and other options depending on the insurance agency and state laws.
Vehicles used for personal transportation may include vehicles used for commuting, shopping, visiting friends and family, and taking personal trips.
Personal auto insurance policies may have limitations when using it for an operating business. If you regularly use your vehicle to earn income or conduct business, it’s important to check with your agent and see if there are better coverage options.
Key Takeaways
The biggest differences between the two insurance policies include vehicle use, ownership, exposure to liabilities, and drivers.
- Personal insurance is generally intended for personal driving. Commercial insurance is designed for regular business use.
- A personally owned vehicle used for personal reasons will have personal auto insurance. Vehicles owned by a business may require commercial coverage.
- Commercial vehicles may be driven by employees or multiple authorized drivers, creating additional risks.
- Business vehicle accidents can potentially expose both the driver and the business to claims.
Both personal and commercial auto insurance play important roles when it comes to choosing the right coverage for your vehicle. Personal auto insurance focuses on everyday personal transportation, while commercial auto insurance addresses risks associated with business activities. Reviewing your policy with an insurance agent can help you make the right choice whenever your vehicle’s use, ownership, or drivers change. Having coverage that corresponds with your vehicle use and purpose can help reduce the risk of unexpected coverage issues.
You can experience the benefits of being a part of a full-service Independent Insurance Agency today! Simply contact Briggs Agency, Inc. if you are interested in an insurance review at 219-769-4840 or visit our website at www.BriggsAgency.com. We look forward to hearing from you!
Blog written by: Sara Trajanoska
