When shopping for auto insurance, there are many options to consider. In addition to choosing coverage, liability limits, and a deductible, you must also make sure you’re purchasing the right kind of policy. Many people assume a personal policy is sufficient without realizing they actually need commercial coverage. This is why it’s important to have a clear understanding of what each entails. Here are some differences to consider when deciding which is most suitable for your situation.

Commercial vs. Personal Auto Insurance

Key Differences Between These Two Types of Policies 

Personal auto insurance is designed to cover policyholders while they’re driving for personal reasons, such as running errands, commuting to work, or taking a road trip. Insurance carriers will cover vehicles registered under the policyholder’s name and any other drivers listed.

In contrast, commercial auto insurance is intended to cover vehicles registered to a business and driven to conduct business-related functions. These policies provide limits that are much higher than personal ones, and they include coverage for a variety of heavy-duty vehicles, including semi-trucks, tow trucks, snowplows, and those weighing over 10,000 pounds. 

Which Policy Do You Need if You’re Self-Employed?

When you’re self-employed, your auto insurance requirements will largely depend on the kind of work you do. If you use your vehicle to carry out business activities, like delivering goods, picking up clients, and hauling materials, you will need a commercial policy. In the event you caused an accident while on the job, a personal policy wouldn’t cover the damages. Additionally, if your car was broken into and work materials were stolen, commercial coverage would be necessary to get it replaced.

Buying the wrong kind of auto insurance will leave you at risk for significant financial loss. If you are unsure whether you need a commercial or personal policy, contact an agent with Somers Agency LLC. They will help determine exactly what your coverage needs are to ensure you end up with adequate protection. For more than a century, individuals and business owners throughout Lorain County, OH have relied on the agency to provide them with quality insurance products at competitive pricing. Call (440) 324-3447 to schedule an appointment or visit them online for more information about each kind of policy.