Auto insurance comes in two main types: personal and commercial. They provide the same protections, but the former covers you for personal or family driving, while the second covers trips made for business. If you’re a business owner and uncertain which type you need, below is an introduction to each and an explanation of what they cover.
The Differences Between Personal & Commercial Auto Insurance
Personal auto insurance covers purely private automotive use. For instance, if you use the vehicle to run errands, go shopping, and chauffeur your children, you only require personal insurance to cover it.
The definition of personal use also includes commuting to and from work, provided the vehicle isn’t used to conduct business. Depending on your needs, the coverage it offers includes liability—in case you accidentally injure someone or damage their property while you're behind the wheel—collision, which pays for damages to your own car, and comprehensive coverage, which pays for non-collision losses due to fire, vandalism, or theft.
Commercial auto insurance covers automobile use in the line of business. For instance, semi-trucks, pizza delivery vehicles, and taxis require commercial coverage because their use is primarily for profit. However, if you’re self-employed or regularly use your personal vehicle for business use, you may also need a commercial car insurance policy. As an example, if you deliver pizzas in your own vehicle instead of one belonging to your employer, or if you regularly deliver items for work, such as flowers, cakes, parts, or other products, you should purchase a commercial policy to protect yourself.
An insurer may deny a claim you make on your personal policy for damages caused while you were using it for business purposes. In general, if you use your vehicle for deliveries, if you have work-related signs or equipment installed, or if you transport passengers, you should seek a commercial policy even if you utilize a personal vehicle.
For invaluable assistance designing a personal or commercial auto insurance policy, contact High Rock Insurance Agency in Lexington, NC. Their experienced agents serve businesses and individuals throughout Davidson County and can help whether you need auto, health, life, or homeowners insurance. Visit their website to connect with them online or call (336) 236-9022 to request an insurance quote.