If you own a business or are self-employed, the chances are that you use a vehicle for work purposes. However, if you are driving your own car to make deliveries or visit suppliers, you might need commercial, rather than personal, auto insurance. Here’s a closer look at the differences between the two types of coverage.

What's the Difference Between Commercial & Personal Auto Insurance?

Commercial

As the name suggests, commercial policies are mostly designed for vehicles registered to the business. They feature a higher level of protection to safeguard your company from liability claims. If, for example, you were to get into an accident while driving your tractor trailer full of products from your warehouse, it could help cover damage to the vehicle, the other driver’s car, medical expenses, as well as the cost of your lost inventory.

Personal

Personal auto insurance policies focus on individual needs. As with commercial plans, this type of policy offers a variety of protections, like liability and medical coverage. However, the coverage usually costs less because of the lower financial risks involved. To qualify for a personal policy, the vehicle needs to be registered in your name, not your business’s.

What Type of Auto Insurance Do Self-Employed Individuals Need?

Many self-employed individuals utilize their vehicle for both business and personal use. As a result, there is some grey area about what kind of policy they need. If you seldom drive for business reasons, then personal coverage makes sense. However, a high percentage of business-related travel is better served by a commercial policy.

Find the right auto insurance policy for your needs by turning to Fritch Insurance Inc. in Beatrice, NE. For 20 years, the independent agency has assisted residents and businesses throughout Gage County with everything from homeowners to crop insurance. Their team works one-on-one with clients to ensure all of their unique requirements are met. Request a quote today on their website or by calling (402) 223-3312.