What Differentiates Personal and Commercial Auto Insurance?

Understanding commercial auto insurance.company van

If your company owns vehicles or requires employees to drive on the job, then you need to protect your business with the right commercial auto insurance.  But what is this coverage, and what makes it different than personal car insurance policies?  Here’s what you need to know.

Personal vs. Commercial Auto

When you compare personal and commercial auto policies, you’ll notice that both types of insurance offer similar forms of coverage.  For instance, both personal and commercial auto policies will offer coverages such as collision, comprehensive, bodily injury liability, property damage liability, medical payments, and so on.  The main difference between these two types of insurance is the amount of coverage that they offer.  Because businesses face higher liability risks and have more assets to protect than individuals, commercial auto policies offer higher coverage limits and are designed to cover more complex legal issues than personal policies are.  Additionally, because businesses can use standard cars, vans, and even delivery trucks, commercial auto policies are designed to cover a wider array of vehicles than personal car insurance.

What Does Commercial Auto Insurance Cover?

Commercial auto insurance is designed to cover accidents that occur when you or your employees are using a vehicle for business purposes.  While this coverage obviously encompasses company-owned vehicles, it can also extend to your employee’s personal vehicles that they are using for business-related purposes.

Who Needs Commercial Auto Insurance?

Any business that routinely uses vehicles to carry out operations needs commercial auto insurance.  This includes businesses that handle the following:

  • Transporting goods or equipment
  • Delivering goods or services
  • Driving around clients or employees
  • Renting out company vehicles for client use
  • Hauling work-related loads
  • Towing trailers used for business purposes

Securing the Right Commercial Auto Insurance

Because heavy vans and trucks will cause more damage than standard vehicles in an accident, these types of vehicles face higher liability risks.  If your business owns vehicles that weigh more than five tons or haul more than one-ton loads, you require special commercial insurance coverage.  Vehicles that fall into this category include minibuses, cement mixers, semi-trucks, and tow-trucks.

This is what makes commercial auto insurance different than personal policies.  Do you have additional questions about your business’s insurance?  If so, then contact the experts at Miller Carlisle Insurance Services.  We are ready to assist you with all your commercial coverage needs today.