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Commercial Auto Insurance vs. Personal Auto Insurance

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Commercial Auto Insurance Basics

Commercial auto insurance is designed for business owners and other people who use their car primarily for work or business needs. It offers higher liability coverage and other benefits to legally protect your business assets and employees. Most personal auto insurance policies don’t offer enough coverage to properly protect a business in terms of liability and property damage; this is why business owners and other people who use their car for business on a regular basis need commercial auto insurance.

Personal Auto Insurance Basics

Personal auto insurance covers the personal vehicle you use. Whether you use your car to commute to work, pick up the kids from soccer practice, or for road trips, your personal car insurance policy covers you for these purposes.

It’s Not Where You Drive, But Why

There is no limit to how much you can drive under a standard auto insurance policy, as long as it’s for personal reasons. But, if you’re a sales representative who regularly travels to and from client sites and occasionally transports clients, for example, you probably need commercial vehicle insurance due to the high liability risk your company could face in the event of an accident.

Who Needs Commercial Auto Insurance?

You’ll need a commercial auto insurance policy if the following applies:

  • Charging a fee to use your vehicle to transport goods or people
  • Hauling equipment or tools to a job site
  • Towing a trailer used to conduct your business
  • The vehicle is owned by a corporation or partnership
  • Employees operate the vehicle

There are many types of jobs that involve the use of a personal car, such as ridesharing (Uber and Lyft), pizza/food delivery, and courier services. If your job requires you to use your personal car to deliver goods or transport people on a regular basis, contact your insurance agent to find out if you need commercial auto insurance coverage. They can offer guidance to help you get the coverage you need.

Commercial Auto Insurance Quote

If you’re still unsure whether you need commercial auto insurance vs. personal auto insurance, Freeway Insurance can answer your questions and help you get the right coverage. When you request a commercial auto insurance quote from us, we’ll compare quotes to ensure you get the best coverage at the lowest price. Request a free commercial auto insurance quote online or over the phone by calling 800-777-5620.