If you’re using your vehicle for business activities, then you might need commercial auto insurance. But what exactly is the difference between commercial auto insurance and personal auto insurance? Keep reading to find out more.
What Is Personal Auto Insurance?
Personal auto insurance is intended for vehicles used for personal or domestic purposes. This type of coverage is mandatory in most states for all privately owned vehicles.
Personal auto insurance coverage offers three basic types of coverage: liability, collision, and comprehensive.
Liability coverage covers he damage you cause to other people’s properties or injuries to other drivers in case you’re involved in a car accident.
Collision coverage, on the other hand, helps cover the cost of damages if your car if it’s involved in a collision with another vehicle or if you hit another object, such as a post or guardrail.
Comprehensive coverage kicks in when other types of incidents occur, for example, theft, fire, or vandalism.
What Is Commercial Auto Insurance?
Commercial auto insurance, on the hand, is intended for vehicles used in business activities.
In general commercial auto insurance can cover the same things as personal auto insurance, but it is extended for commercial purposes.
The coverage usually includes both liability and collision coverage for the vehicle, employees who are operating the vehicle, and for any goods or cargo carried in the car.
it’s essential to consider purchasing commercial auto insurance because personal policies don’t cover personal use and business owners policies (BOPs) don’t include coverage for vehicles.
Who Needs Commercial Auto Insurance?
Commercial auto insurance is intended for business owners who use vehicles for business purposes This includes vehicles that are used for deliveries, hauling equipment, or transporting people.
Having commercial auto insurance gives you the peace of mind that comes knowing that your business is protected from financial losses in case an accident happens while using the vehicle for business operations.
How Much Does Commercial Auto Insurance Cost?
The cost of commercial auto insurance varies. It is determined by the type of vehicle used for business purposes and the company’s needs. Some of the factors that determine the cost of commercial auto insurance include the vehicle’s age, type, purpose, number of employees operating the vehicle, and location.
It is important for the business owner to purchase the right insurance package because it determines the level of protection for their business assets. Contact us today to get the commercial auto insurance coverage that works for you!
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