Commercial Auto Policy Vs. Personal Auto Policy
Auto insurance policies can be bought to provide coverage for personal or commercial vehicles. The type of coverage needed will depend on how the car is used.
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Auto Insurance
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Auto insurance protects the policy owner from liability in case the insured vehicle(s) are involved in an accident or any covered incident.
Types
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There are two main types of auto policies available for personal or commercial purchase: physical damage and liability. Policy owners are required by law to keep a minimum amount of liability coverage on any vehicle in operation.
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Benefits
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Both personal and commercial auto policies can pay for damage to the vehicle, any property damage involved, and medical expenses for injured parties. Commercial auto policies will also protect the company if a lawsuit arises from the incident.
Considerations
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Insurers consider several factors when determining premium amounts for a commercial auto policy such, as the number of vehicles being insured, the types and usage of the vehicles, the business’ worth and the amount of coverage requested.
Warning
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If a policy provides less coverage than the amount of damage, the policy owner will have to pay the difference.
Commercial Auto Insurance
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Commercial auto insurance covers vehicles that are used for business purposes. Insurers will require commercial coverage if the car will be driven by employees, if the company itself needs commercial insurance, or if equipment is attached to the vehicle.
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