What is the Difference Between Commercial and Personal Auto Insurance?

There can be many pitfalls when deciding what car insurance fits your needs. Do you need comprehensive coverage? How high of a deductible will you be responsible for? What will be the length or term of the policy? These are but a few of the sometimes difficult questions we face when attempting to make sure we are getting our money’s worth for our insurance. But there is one that many forget to ask themselves, particularly those who own businesses: does my personal auto insurance also cover my business. The short answer is no. The government views proprietors as separate entities from their companies. Hence whenever you are performing commercial activities you will need a unique policy for the vehicles you operate. Though the lines become blurred for small time owners since so much of what they do is both personal and business related, they need to be sure they are complying with the law or they could face stiff penalties and having to lay out money for things for which they did not expect to pay.

Luckily, obtaining this extra service is a simple enough matter. If you purchase your personal policy from any of the major insurance companies, they should also be able to help with your commercial enterprises. Whether it is Progressive, GEICO, Nationwide, State Farm, or The Hartford, to name a few, they all offer a range of coverage options and prices to fit most budgets. Seems simple enough so far, but there are some things to avoid when making your final decision. To begin with, make sure your policy not only completely covers any liability on your part, but will also extend to anyone you may have the misfortune of harming in some way. The best commercial options will include bodily and property liability, collision, comprehensive (incidentals connected to collisions), uninsured and underinsured motorists, medical payments, and other options besides those listed here. Check these items off your list as you go over your policy, and that way you can rest assured that you are purchasing the best insurance.

As great as these kinds of policies sound, many business owners falsely believe they also cover their personal vehicles. This is largely not the case. Still, many of the rules you apply to finding personal insurance apply to the commercial version. Other than the suggestions listed above, it is always important to compare rates. Shopping around will help ensure that you are spending your money wisely in regards to commercial insurance needs. You must have a firm grasp of the ins and outs of your company. On a personal level, this might pertain to how much you drive on a daily basis. For companies, having an awareness of the number of vehicles and drivers you need insured will help you get an idea of what you will need to spend to be fully covered. Finally, the companies that have the longest experience insuring companies of all sizes will be the most attractive, since they have the proven track record of dealing with any of the surprises of running a successful company might bring you.