Should you purchase Personal or Commercial Auto?

If your business owns a vehicle then a personal auto insurance coverage may not offer you the protections that you need. Instead, commercial auto insurance might be the better choice, limiting your liability and offering more comprehensive coverage.

Difference between Commercial and Personal Auto Insurance

As you can probably tell, commercial auto insurance and personal auto insurance differ because one is meant to cover your commercial (or business) automobile or fleet and the other your personal automobile. But the difference is actually more than that. Personal auto insurance covers insurable events like the bodily injury of you, your passenger, or another driver. It also covers collision costs, uninsured motorist claims, theft of your personal assets and property damage liability when caused by your personal vehicle. Commercial auto insurance has a different set of liabilities to cover. For example, let’s say that the passenger in your car is not just a friend or family member along for a ride somewhere—as it would be in a personal vehicle—but a client that is paying you to drive them to a certain location. Or, let’s say that your vehicle is stolen not just with your personal DVD’s and laptop in it, but expensive business equipment owned by your client that you were meant to transport somewhere. In both of these examples, not only are the cost of the missing goods or injuries going to be part of the claim, but the loss of use and loss of business caused by the interruption by the insurable incident and subsequent repair of your car could play a major role in the impact of the claim. Additionally, the liability you as the business owner carry as the responsible party to your client’s goods is also much greater than the personal liability involved in losing a few DVDs.


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