What Are the Differences Between Commercial and Personal Auto Insurance?
It’s important that those who are on the market for the right auto insurance policy know the differences between commercial and personal auto insurance. Consumers may wonder whether a commercial or a personal policy is right for them. Many small business owners use their personal vehicles in business activities, so they’ll want to be aware of any advantages to having a commercial policy.
As a general rule, a personal policy is probably adequate if you don’t use your car for business purposes on a regular basis. However, if you use your vehicle for work often, a personal policy might not cover all of your liability needs.
If you transport clients or passengers as a part of your job, you probably will need a commercial insurance policy to ensure that all of your business assets and liabilities will be covered in the event of an on-the-job accident.
Other than some differences in what they cover, commercial policies and personal policies work very similarly. Premiums are determined on both commercial and personal policies by looking at how much a vehicle is driven, who is driving the vehicle, and whether or not there are any accidents or mishaps on the drivers’ records.
The most important thing to remember when considering the differences between commercial and personal auto insurance is that you want to make sure all your liabilities are covered. If you are using a personal vehicle for business tasks on occasion, you might want to verify with your insurance company if accidents would be covered if they occurred during work tasks. Be wary of low liability limits that could leave you in serious financial trouble if you experience an accident.
For more information on meeting your auto insurance needs, contact us at Schumacher Insurance.