If you don’t own a company or operate a fleet of business vehicles, you may have never thought about commercial auto insurance. However, this type of policy may be important to consider if you use your regular vehicle for certain business purposes. Here is a guide to the differences between personal and commercial auto policies, so you can determine what best suits your driving needs.

What Is Commercial Auto Insurance?

Like personal policies, commercial auto insurance provides collision, comprehensive physical damage, and uninsured motorist coverage. It also covers the cost of lawsuits related to auto accidents, including legal fees and medical expenses.

The main difference between commercial and personal policies is that commercial insurance is intended to protect vehicles owned by a business or personal vehicles driven for business reasons. Also, the liability limit is higher for commercial auto insurance because this type of vehicle spends more time on the road, increasing the likelihood of an accident. 

Why Do I Need This Type of Policy?

Companies that use vehicles for business-related reasons need commercial insurance to legally protect their assets and employees. If you are self-employed and use your vehicle for tasks like traveling to job sites, delivering products, and carrying equipment or tools, then you may be eligible for commercial auto insurance. However, driving only for commuting purposes will be covered by your personal policy. Describe your vehicle usage to your insurance agent to see if you need to purchase a separate commercial policy.

When you need affordable coverage, it pays to have options from the country’s top insurance providers. Crothers Insurance Agency provides drivers throughout the Rising Sun, MD, area with quality insurance products that protect them behind the wheel. Call (410) 658-5200 to speak to an experienced insurance agent about your commercial or personal auto insurance needs. Like the agency on Facebook to learn more about their coverage options.