Primary Differences between Commercial and Personal Auto Insurance

Auto insurance is essential whether you drive your personal vehicle or a company-owned car. Every state has mandatory auto insurance coverage requirements that must be honored if you plan on taking a vehicle out on the city streets or any public roadway. It’s important to understand the differences between a personal policy and a commercial auto insurance policy. If you have more than one company vehicle, you may need to consider purchasing fleet insurance.

Primary Differences between Personal and Commercial Auto Insurance Coverage

One of the key differences between personal and commercial auto insurance coverage is who is being covered. A personal auto insurance policy will cover a person. Normally this is the owner of the vehicle or a family member who is listed on the policy. A commercial auto insurance policy will not cover a person. Instead, it covers the business that owns the car. Commercial coverage also covers items normally used in the operations of your business that may be carried in the vehicle. Large vehicles like box trucks or specialty vehicles may require an additional policy to ensure that you are sufficiently covered.

What Does Liability Coverage Provide?

Both your personal and commercial vehicles will need to carry adequate liability coverage to ensure that you will be protected if someone is injured or property is damaged. This protects you from any heavy financial losses if someone files a claim against you. In addition, umbrella policies may be something you should consider if you own a business. This will provide additional protection if the cap for your traditional auto insurance policy exceeds after a claim has been filed. Liability insurance will cover claims for personal injuries and property damage that the other party incurs. Without it, you will be financially responsible and may have to pay out of pocket personally if you own a business and don’t have sufficient coverage. Your firm should have a business owner’s policy for best results. This policy incorporates workers’ compensation, general liability, cyber insurance, etc.

Key Concepts of Personal Auto Insurance Coverage

When it comes to personal auto insurance coverage, you want to make sure you are adequately covered in the event of an accident. If you have an accident, this auto insurance is created to safeguard your personal assets. If you have a lien on your vehicle, you may be required to purchase a comprehensive policy to ensure the lien is taken care of if your car is totaled. Otherwise, collision or Personal Liability and Property Damage (PL/PD) insurance may be sufficient to meet the state’s minimum requirements. Talking to an agent will ensure that you have what you need to drive legally. Your agent will help you determine what the minimum amounts are and how much insurance you will need to maintain that level of coverage.

If you are looking for a quality auto insurance policy for yourself or your company, the Advanced Insurance Group is your best choice. Our reliable agents have the expertise to help you find the right policy for your personal and commercial needs. If you already have auto policies in place, you could also schedule a review with us to ensure that you are adequately covered. This will enable you to update all of your information and keep you updated about any changes that may need to be made. Contact us today!

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