Choosing between the two main types of car insurance available—personal and commercial—is typically pretty simple. Yet, if you happen to utilize your personal vehicle for business purposes as well, then the answer isn't as obvious. Here's how to know if you need commercial coverage. 

When Is Commercial Coverage Necessary?

Personal insurance policies are only designed to cover the day-to-day needs of driving, such as commuting and running errands. However, most plans strictly forbid any commercial usage. As a result, if you use your car to deliver products from your work or to drive paying customers, the coverage becomes ineffective.

In such cases, medical or property damage claims from any accident that occurs during that time won't be covered by the provider. Collisions are expensive. To avoid covering claims out-of-pocket, you need to make sure that your policy matches your driving needs. 

How Does It Differ From Personal Coverage?

One of the biggest differences between commercial and personal policies is the level of liability coverage. Businesses often face higher claim amounts than personal drivers. It is also expected that commercial vehicles will be driven more, adding to their risk. For these reasons, commercial plans are designed with much higher liability coverage. Often, a commercial policy extends to personal usage but not vice versa. 

When commerical usage is rare, you may be allowed to add an endorsement to your current auto coverage that expands the liability protections. Many insurance companies are now also offering specialty insurance policies that cater to the unique needs of growing industries, like rideshare.

Find the right coverage for your circumstances with the assistance of Doris Watson Insurance Agency in Broken Arrow, OK. As a State FarmⓇ Insurance agent, she offers a wide range of cost-effective coverage solutions—everything from auto to home policies—to residents of Tulsa and Wagoner counties. Trust her for personalized and knowledgable assistance. Request a car insurance quote today online or call (918) 251-4333 with questions.