Personal Vs Commercial Auto Insurance - What's The Difference?

Personal vs commercial auto insurance. What's the difference? Can you get by with one and not the other? Not exactly.

Personal Auto Insurance and Commercial Auto Insurance are similar, and yet completely different products. And while the rumor is that your personal auto insurance will cover any business use, the reality is that often is not the case.

Personal auto insurance is great for vehicles that you use for your own personal reasons. Complications can happen when you try to use personal insurance to cover a car that is in the company name, and your personal insurance will mainly cover claims that happen outside of work.

Commercial auto insurance can be more expensive than personal insurance. This is because of the higher risk involved with covering commercial vehicles. However, one positive is that there is higher limits found in commercial auto insurance. Your commercial policy can also protect your business assets if your company was sued, which a personal policy won’t do.

Of course, there are some areas where the two overlap. Realtors can use their personal vehicles, but pizza delivery drivers often cannot. And ride sharing drivers might get some limited protection from the company they drive for.

Your situation is unique, so there is no cut-and-dry formula for determining what type of policy is right for you. That’s why you need to contact an independent insurance agent like Harry Levine Insurance to determine what is best for you and your needs.

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