If you drive your personal vehicle for business purposes, you may not be covered by the right type of auto insurance. Personal car insurance covers you when you drive to and from your workplace, go shopping, and chauffeur your kids to school and back. However, it doesn't cover many commercial driving situations. The information below will help you understand if you need additional coverage.

What Is Commercial Auto Insurance?

Commercial insurance covers vehicles used for business purposes. It normally has higher limits than personal coverage does and covers lawsuits directed at your business. A personal policy would cover claims aimed at you, but not your company. Additionally, a commercial policy also covers you and any of your employees when operating the vehicle. Note that, since heavy-duty vehicles—semis, dump trucks, and heavy haulers—can do a lot more damage in a collision than a passenger sedan, larger rigs usually need special coverage.

When Do You Need Commercial Car Insurance?

Ride Sharing

If you work for a ride-hailing service—like Uber® or Lyft®—or if you ferry passengers in your personal car for other reasons, you are almost certainly not covered by your personal auto insurance policy while doing so. In other words, if you were to suffer an accident with paying passengers aboard, you could be solely responsible for damages to your vehicle as well as to those of the other vehicle. Moreover, you could be held responsible for injuries to the passengers. This could amount to thousands of dollars in medical and legal bills.

Deliveries

If you regularly deliver products with your personal vehicle, look into commercial coverage. For instance, if dropping off parts to customers is a regular part of your job description, it's important to buy the right policy. On the other hand, occasionally dropping off your boss's laundry at the dry cleaners likely doesn't count—even if you do it during work hours.

Transporting Business Equipment

If your vehicle is equipped with expensive business equipment, consider buying commercial auto insurance. It offers higher limits and covers work-related losses. Thus, if your business would take a serious financial hit if someone broke into your van and stole your plumbing or HVAC tools, you shouldn't risk your livelihood by trying to rely solely on personal coverage. 

Whether you need personal or commercial auto insurance, the friendly, knowledgeable agents at Integrity Insurance Solutions will help. They are an independent agency based in San Marcos, TX, and have been serving clients in Hays, Caldwell, and Guadalupe counties for more than 10 years. They specialize in auto, home, business, and umbrella insurance. Visit their website to reach out to them online or call (512) 396-2211 to request an auto insurance quote.