The main difference between personal and commercial auto insurance is the type of liabilities the policy covers. While both policies pay for vehicle repairs and medical bills after an accident, commercial auto insurance usually covers higher claims, different types of vehicles, and more complex legal issues than personal auto insurance..
This also opens the door for both the company and driver to be sued if they were at fault; Further, just as with personal car insurance, commercial car insurance rates can increase or decrease due to negative and positive factors. For example, the more established a business is, the lower monthly premium rates will be.. A commercial auto insurance policy usually offers higher limits than a standard personal auto policy, so if your business protection requires higher liability limits, commercial insurance is the way to go. Still not sure if you need a commercial auto policy or if a personal auto policy will suffice?.
Despite these similarities, there are several key ways that commercial vehicle insurance is different to personal insurance. These include: Higher risks. A commercial vehicle is typically used far more often than a personal vehicle, and often involves carrying abnormal loads.. Commercial consumers will have broader concerns than personal lines consumers. Underwriters will consider four different liability exposures: premises, operations, products, and completed.... A personal insurance policy can provide coverage for an individual to protect the assets of the business. It can cover expenses if the business owner or other significant employee suffers a disability that prevents him from performing essential duties of the business enterprise..
Tip: If you are “commercial,” you need a commercial auto policy. Personal auto insurance policies have a Commercial Exclusion. If you try to “get by” without the proper coverage, a claims adjuster will sniff out your commercial activities and deny your claim outright…it’s not worth it.. Commercial Auto Insurance vs. Personal Car Insurance When it comes to drivers, vehicles, and purposes, personal drivers don’t have the same kinds of car insurance concerns as do businesses . Businesses have much higher liability issues; as such, usually they have higher liability insurance requirements or recommendations..