IS COMMERCIAL AUTO INSURANCE DIFFERENT FROM PERSONAL AUTO INSURANCE?

When shopping for an insurance policy, many people find it difficult to determine the right Auto Insurance policy they need. Some might not be able to determine whether or not they need a personal auto insurance policy or a commercial auto insurance policy for their vehicle. Most people feel that the Personal policy is sufficient but only get to discover that Commercial Insurance coverage is what they need when they file a claim or get into a collision. Knowing the difference between the two is the only way to properly determine the best policy for you. 
Personal Auto Insurance
A Personal Auto Insurance covers the personal use of your vehicle. It covers for the purpose of road trips, picking up groceries, or transporting of kids to school and soccer practice. As an employee, if you drive your vehicle to and from work, this counts as a personal use.
Commercial Auto Insurance
Commercial insurance is designed for small business owners and people who use their car primarily for business. It offers higher liability coverage and other benefits to legally protect business assets and employees.
The differences
  • If you use your car primarily for business purposes, a commercial auto insurance policy does not only properly protect you and your business but also ensure that you stay legal. Personal Auto Insurance does not provide enough coverage for business vehicles.
  • If you drive to and from your job, you won’t need a commercial plan since you are not primarily using your vehicle for any business purposes. Commercial Auto Insurance is needed only by people who drive a van with your work tools, a snowplow or drive long distances to various work sites for business.
If you wish to know more about the differences between Commercial Auto Insurance and Personal Auto Insurance or you wish to determine the right policy needed to keep your business up and running, you can call or contact IDA today.

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