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Wednesday 29 January 2020
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Erasing the Blurry Line Between Personal and Commercial Auto Insurance

Erasing the Blurry Line Between Personal and Commercial Auto Insurance

Choosing between personal vehicle insurance and commercial vehicle insurance may confuse for many. Small business owners especially find the line between personal vehicle and commercial vehicle blurry. The two policies differ by the extent of coverage provided. Both cover vehicle repairs and medical bills associated with accidents but the commercial insurance provides higher coverage, covers different types of vehicles and complex legal issues.

Under what situations is commercial auto insurance right for me?

If the vehicle used for business purpose:

  • Transports goods and equipment
  • Drives employees and clients
  • Carries out a service you get paid for
  • Charges a fee for passengers to ride in the vehicle
  • Charges a fee to transport goods in the vehicle
  • Hauls work-related loads
  • Tows a trailer used for business purposes

The experts at American Truck Insurance will help you determine the required insurance policy. There have been in commercial auto insurance industry for years and help you in securing commercial auto insurance in Alabama.

If you use a fleet of vehicles for business purposes or own a business where you use your vehicle for business purposes, you need to purchase commercial auto insurance. There are instances where people have no idea, they require a commercial auto insurance for their personal vehicle.

Factors influencing commercial VS personal auto insurance cost:

  • The vehicle usage
  • Value of the vehicle
  • Vehicle features and modifications
  • Policy and coverage limits
  • Other business-specific factors

How are both different?

Personal auto insurance covers only accidents when the vehicle is used for personal reasons including commuting to and from work. The insurance typically covers the vehicle owner and may be a maximum of 2 immediate family members. If you only use your personal vehicle occasionally for business purposes, in very few cases you can ask your insurer to modify the policy and include business uses.

Commercial auto insurance is design for business driving needs. It can be catered to your specific type of business, number of vehicles your business owns, number of drivers using your business vehicles.

For heavy-duty vehicles:

Heavy duty vehicles cause more damage compared to light weight vehicles in case of an accident. Since the potential liabilities are higher, heavy vehicles like minibuses, semi-trucks, cement mixers and tow trucks require commercial auto insurance.

If you are still unsure about which policy suits you, talk to an insurance agent. They will shed more light on it.