Transcript
The difference between personal auto vs commercial auto policy
There are a few key differences between personal auto insurance and commercial auto insurance.
Most personal auto insurance policies only cover the named insured on the policy and perhaps their immediate family members. If a friend borrows your car to pick up some food in the supermarket and has an accident, they probably won't be covered by your auto policy. You should always check with your insurance company before lending your car to someone to see if they can be covered in the event of an accident.
A commercial auto insurance policy can cover you, your employees, and the occupants of your vehicles for liability that results from the use of a vehicle for business purposes. A commercial auto policy can also provide physical damage coverage for your vehicles. A commercial policy may be required if you use your vehicle for any business purposes other than commuting to work.
A commercial auto insurance policy provides you with similar coverages to a personal one. For example, it protects against liability, collision, accidents, and medical payments. However, there are some major differences that may include eligibility, definitions, exclusions, limits, and coverages. In addition, your commercial auto insurance can include coverage for bodily injury, property damage, personal injury, uninsured motorists, comprehensive physical damage, and collision.
Commercial auto policies typically offer more coverage than personal. They often come with higher liability limits because of risks associated with using vehicles for work purposes; this can even include cars that aren't owned by your company but still have employees driving them during their commute (like if you're an independent contractor). Make sure you ask your general counsel, risk management department, or insurance agent to see which type of coverage you have and what occurrences it will cover!
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