If your business uses vehicles—even your personal car—you’ll need a commercial auto insurance policy to protect your investments from the consequences of any accidents. Whether you just run a small business on the weekends or operate a major company, commercial insurance offers special features and covers situations your personal policy may not. Understanding the difference between these two types of insurance is key to getting the coverage you need.

The Difference Between Business & Personal Auto Insurance

Number of Drivers

While you can have multiple drivers on your personal auto insurance, each has to be individually listed on the policy, and their driving records may affect your rates. Commercial auto insurance, on the other hand, lists the business itself, so any employee driving a vehicle will be covered—even if they only drive occasionally.

More Liability Protection

Personal insurance policies are designed to protect the average family with typical assets. Businesses, however, usually have more value than private individuals, which can be threatened by liability suits resulting from an accident. To compensate, commercial auto insurance policies often have much higher liability limits, offering millions of dollars in coverage if necessary.

Types of Uses Covered

Personal auto insurance policies generally won’t cover damage that occurs while the vehicle is being used for business, which is why even self-employed individuals should consider purchasing additional coverage. For instance, if you use your private vehicle to repair computers in customers’ homes, your agent will likely suggest investing in a commercial auto coverage policy.

Since 1948, Comaltex Insurance Agency Inc has provided New Braunfels, TX, business owners with a comprehensive range of commercial coverage options from some of the best carriers in the industry. If you use your vehicle for work, their team will help select a policy that provides the coverage you need at the most competitive rates available. Visit their website to learn more about the benefits of commercial auto insurance, follow their Twitter for news and tips, and call (830) 625-7511 now to request a quote.