How Does Commercial Insurance Differ From Personal Insurance

How Does Commercial Insurance Differ From Personal Insurance

When it comes to auto insurance, there is a big difference between commercial and personal coverages. While many are already familiar with personal insurance, fewer really understand what commercial insurance is all about and who this insurance is meant to help. Some drivers may not be quite sure if they need a personal or commercial policy for their own coverages, and we hope to clear up a little of this confusion by breaking down some of the distinct differences between the two.

 

The Differences Between Commercial And Personal Insurance Policies

 

There are a few key factors that differentiate between the need for commercial or personal insurance coverage. These key factors include:

 

  1. Who owns and drives the vehicle? – The first question you should ask has to do with who owns the vehicle and who will be driving it. If your vehicle is owned by your or another business, it’s commercial insurance you should opt for in order to get the coverage you need. If you own the vehicle, it might be a personal policy that better fits your needs. However, even if you do own the vehicle, you’ll also need to consider what that vehicle is used for. If it is used primarily for business purposes, you may still be looking for commercial

 

  1. How do you use the vehicle? – If you’re only visiting a couple of job sites a day or using the vehicle to commute to a workplace, a personal policy may be better suited for your needs. However, if you are using the vehicle frequently for business purposes all throughout the day, commercial coverage is what you should be looking in to.

 

  1. What type of vehicle is it? – The type and weight of the vehicle in question also matter. If your vehicle is larger and heavier than the standard truck or SUV, you may require commercial coverage in order to have the vehicle fully insured. This covers vehicles like dump trucks, snowplows, commercial trailers, or semi-trucks. These heavy-duty vehicles can cause serious damage in the event of an accident and will require additional protection due to that fact.

 

  1. What are your liability limits? – In some instances, a business vehicle will require higher liability limits than what a personal policy can offer. If you do require higher liability limits, looking into a commercial policy is what you need in order to get this coverage.

 

Talking To Your Insurance Provider

 

If you’re still unsure if you require a personal or a commercial policy, your next step should be talking to your insurance provider about your needs and what these policies offer. Your insurance agent should be able to listen to your details and direct you to the insurance coverage that suits you best. If you’re unsure about your need for commercial versus personal insurance, our agents at Panorama are here to talk you through the coverage process. Call us today to learn more about what coverage is best for you.

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