Understanding the Differences Between Personal and Commercial Auto Insurance

Personal and commercial vehicle owners may benefit from auto insurance. The appropriate type of policy depends mainly on how the vehicle is used.

Personal Auto Insurance vs. Commercial Auto Insurance

The following are the main differences between personal and commercial auto insurance:

• Coverage scope—Personal policies are written for vehicles owned by individuals and may cover their daily commuting, errands and other personal travel. Commercial policies are intended for vehicles owned or leased by a business that are often used for business tasks, such as transporting goods or clients.

• Driver coverage—Personal auto may cover the vehicle owner and immediate family members. It may not cover anyone driving your vehicle for business purposes. Commercial policies may cover multiple drivers and vehicles under one policy.

• Vehicle type—Personal auto insurance typically covers standard cars and SUVs. Commercial insurance can often include larger vehicles like vans, trucks or those equipped for special tasks.

• Liability coverage—Commercial policies usually offer higher liability limits to account for the increased risk involved with business operations, while personal policies generally have lower limits.

What Events Do These Policies Cover?

Both personal and commercial auto insurance may cover collisions, regardless of fault. They also often include liability coverage for bodily injury and property damage caused to others. They may cover events unrelated to a collision, such as theft, vandalism or damage due to severe weather. Additionally, both may offer medical payments coverage for minor injuries sustained by the driver and passengers. Uninsured and underinsured motorist coverages are also available for both personal and commercial policies and may assist when other parties are at fault for accidents but cannot cover your losses.

Obtain Optimal Auto Insurance

Vehicle owners in Hemphill, Texas, and nearby communities trust Shelby Insurance Agency to provide reliable personal and commercial auto insurance. Contact us today to learn how we can help.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.