What Is the Difference between Commercial Auto Insurance and Personal Auto Insurance?

October 30, 2020 Blog

Quick Guide to Help You Navigate the World of Insurance

Are you considering earning some extra funds by delivering pizzas in your car? Have you started a landscape business and now use your truck to haul tools and mulch to your job sites? If you do and you’re in an accident, your personal auto insurance policy may not pay out. Why do you need different coverage for work related incidents? The answer boils down to the type of activity conducted at the time of the accident. In other words, if you use your personal vehicle for company use, then you must look into a commercial auto policy.

Don’t put your business or personal assets in jeopardy by settling for the wrong or insufficient coverage. Contact The Business Insurance Center about commercial auto insurance and breathe easier knowing you’re protected. We will sit with you to discuss your needs and how you use your car. Then we’ll customize a plan to include the best coverage to protect you and your enterprise.

4 Common Questions about Commercial Fleet Insurance

The size of your business doesn’t matter when it comes to getting the appropriate type of insurance coverage for your automobiles. Instead, there are other factors at play to determine what the best coverage is for you. Here are some questions you should ask:

  1. What is commercial auto insurance? If you use your personal car to run errands for your business, you are using it in a commercial capacity. A commercial auto policy offers a layer of protection when a car, truck, or van is explicitly used for business purposes. It doesn’t have to be a dedicated vehicle either.
  2. What makes it different from personal auto insurance? You face more liability risks when you operate a business than you do as an individual. Therefore, you need coverage for those risks, such as:
    • Property or liability trailer exposure
    • Equipment that is used with or is attached to your vehicle
    • Exposure when loading and unloading
    • Hired-vehicle and non-owned vehicle protection
  3. How do I know if I need a commercial auto policy? It can be a fine line between personal and commercial use. You may need fleet coverage if you use your vehicle for any of the following:
    • Transport equipment and tools
    • Travel to job sites
    • Deliver goods like pizza and newspapers
    • Offer driving services (think Uber, Lyft, limousine, or taxi)
    • Transport freight or to tow other vehicles

Additionally, cars owned by your business, whether a corporation or partnership, may need to change the policy type. The same goes for vehicles leased or rented to others or if employees drive your cars and trucks regularly. Keep in mind that size and weight matter as well.

  1. How much will I spend on a fleet policy? As with any insurance coverage, there are many mitigating factors, such as the vehicle’s cost, type, number, usage, and driving records of all drivers. Your Business Insurance Center broker can help with a commercial fleet insurance quote.

Know Your Company Vehicles Are Covered – Get a Commercial Fleet Insurance Quote from BIC

Leave nothing to chance. Get a commercial fleet insurance quote today. The brokers at The Business Insurance Center have the knowledge and experience to design a plan that will protect your enterprise in the event of a claim. Put our 30 years of insurance understanding to the test by giving us a call!

Request a quote online or call and speak with a knowledgeable and experienced broker at the Business Insurance Center about purchasing commercial auto insurance for your company. We have a 24/7 call center to serve you and an online Live Chat operator. 

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*Disclaimer: Insurance products are subject to terms and conditions, as well as exclusions that we cannot define on our website and blog. The content published here is only intended to provide you with an overview and general information about policies and products in the insurance industry. YOUR policy will carry details of the specific coverages, terms, conditions, limitations, exclusions. These will be governed by the underwriting guidelines applicable in your state.

If any policy provision is in conflict with the information provide on our website, blog or by any of our agents, kindly note that the policy language is controlling and supersedes all other sources. For more information, please contact your local office of The Nowell Agency.

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