Do I Need Both Commercial And Personal Auto Insurance

Do I Need Both Commercial And Personal Auto Insurance

Have you ever gotten behind the wheel and pondered the complications of auto insurance coverage? If you own a business or use your vehicle for work, you may wonder if you need commercial and personal auto insurance. In this blog post, we’ll explore the differences between these two auto insurance policies, discuss the factors determining whether you need one or both, and provide helpful tips to ensure you’re adequately protected. So, buckle up, and let’s hit the road to insurance clarity!

affordable auto insurance

Commercial Auto Insurance Vs. Personal Auto Insurance

Commercial auto insurance safeguards vehicles used mainly for business. It may be a specific business car or a private vehicle. Your coverage shields you from liability, injury, and property damage claims. You can alter your policy to suit the demands of your company.

Your personal car insurance policy will cover your medical expenses and vehicle repairs if you are involved in an accident while driving. Your journey to and from work is covered, but accidents between job sites, for instance, are typically not. Policies usually cover the vehicle owner and one or two immediate family members.

While an individual driver is protected by personal auto coverage, a company is the primary insured under a commercial policy. This may involve a large number of drivers, a large number of vehicles, trucks, or personnel with poor driving histories.

Is Commercial Auto Insurance Necessary?

Here are questions to consider if you’re on the fence about getting commercial car insurance:

Who owns the vehicle?

If your vehicle is registered under your company’s name, your personal auto insurance policy probably won’t cover it. Commercial insurance is something you should look into.

What kind of car is this?

Personal auto insurance typically does not cover vehicles that weigh more than a certain limit. Vehicles over five tons in weight or have a towing capacity of more than one ton need commercial insurance.

Who is driving this car?

You need commercial auto insurance if anyone other than you (and maybe one or two members of your immediate family) will operate the vehicle during the business.

What is the vehicle’s purpose?

A personal auto insurance policy should cover simply commuting to and from work. However, an individual policy will not be adequate if you transport supplies, machinery, or people regularly for work.

What level of coverage do you require?

When it comes to your business, the stakes are far bigger than when driving your own car. There is a possibility that commercial auto insurance will provide more security (financial and otherwise) than an individual policy.

What’s Right for You?

The best approach to learning about the distinctions between personal and commercial auto insurance as they pertain to you is to talk to an insurance professional. Your coverage limits, rates, and risk profile will differ from those of another company, even one operating in the same field.

At Pelican Insurance Agency, we take the time to get to know each client and their company. To ensure that your personal and business vehicles are adequately covered, we’ll take the time to learn about your needs and circumstances before recommending an insurance policy. With our knowledge and individualized approach, you can securely focus on the road ahead, knowing you have enough coverage.