While everyone knows they need car insurance, there are a few instances where it is difficult to determine which type is best for your needs. For small business owners or those who use their vehicles for work purposes, it can be difficult to decide if their vehicles need personal or commercial car insurance. If you are unsure, consult the guide below before requesting a car insurance quote for your vehicle.

The Differences Between Personal & Commercial Auto Insurance 

Personal auto insurance is meant to protect your vehicle during its use for personal tasks, such as commuting to and from the office, going to the store, and meeting friends for dinner. The policy can include multiple cars and drivers who use the vehicles for personal reasons. If you work from home or if your business doesn’t involve delivering goods or transporting people, then your personal auto insurance will likely cover damages to your car.

Commercial auto insurance is for those who own businesses that rely on vehicles. For example, a florist has a vehicle to deliver flowers or a taxi driver uses their car to drive passengers. Your vehicle is considered a commercial one if its primary purpose is to help you run your business. 

How Coverage Differs

Commercial auto insurance policies are similar to personal ones in that they both usually cover costs for the loss of the vehicle and for towing. However, commercial policies tend to be rated differently and may have higher limits than personal ones. They’re also more expensive because it costs more to replace the goods and property that you’re transporting for your business. As a result, insurance companies view commercial vehicles as riskier than personal ones.

Consult an Insurance Agent for a Car Insurance Quote

If you’re unsure whether your business requires the addition of a commercial auto insurance policy, then contact an insurance agency. Depending on your line of work, your insurance agent could either modify your personal auto policy or suggest commercial coverage instead. They will help you find a policy that best protects your interests, so don’t be afraid to ask questions about price, protection, and other factors.

If you need personal or commercial car insurance quotes, then 1st Choice Insurance in Fairfield, OH, can provide the specialized insurance solutions to make you feel comfortable behind the wheel. They’re committed to finding insurance for high-risk drivers, young drivers, or drivers with suspended licenses. They also provide SR-22 insurance along with boat, RV, and motorcycle insurance. Call (513) 860-0666 for a car insurance quote, and visit them online to learn more about why they’re the leading insurance company in the Cincinnati and Fairfield areas.