Between commutes, transportation and food trips, your business uses vehicles a lot. Sometimes, a personal auto insurance policy can cover the loose ends. This doesn’t mean the policy has enough coverage, however. At times, your needs might be better suited to commercial auto coverage.
The line between commercial and personal auto insurance is thin. Depending on your business’s situation, your need for a commercial auto insurance policy might not be obvious.
Why Do You Drive?
Don’t worry: You can determine your need for a commercial auto insurance policy. Why are you driving? Why are your employees driving? If you’re using your own car to visit clients, deliver goods or transport workers, you need a commercial auto insurance policy. If you own a vehicle using the company's accounts, you also need this coverage.
It’s All About the Goods
There’s a difference between commuting with a briefcase and transporting equipment across town. As a rule of thumb: Asset transportation needs a commercial auto insurance policy. If you’re transporting yourself, and your belongings, you can get by with a personal auto policy.
Personal auto insurance won’t repair damages, or treat injuries, caused by business-related transportation. Whether you’re transporting people or goods for revenue, you’re a liability. For this reason, companies like Uber have a specific type of insurance called ridesharing insurance.
The reason you—or your employees—drive dictates the type of coverage you need. In general: Weekend road trips, cross-town travel, commuting and food stops don’t require commercial coverage. On the flip side, pizza delivery, job site visits and equipment transportation deserve a commercial auto insurance policy.
The need for Higher Coverage Limits
Your commercial auto policy will need a higher limit than your personal auto policy. Because you’ll be responsible for clients, employees and business assets, you’ll need more fiscal protection.
You can get discounts based upon your business’s history, needs and operations. Even if you’re paying more money, it’s worth it. You can also take advantage of several cost-saving options.
Modifying Your Auto Policies
A lot of commercial auto insurance policy carriers also have personal auto insurance. Talk to your insurance agent or insurance company. Deciding between a commercial and personal policy can be tough. It can be difficult to mitigate the many factors which overlap between both policies.
By understanding the difference between both policies, however, you can get a great policy which covers your business and personal life alike. You can even modify your current policy. If you use your vehicle for business often, you can get a personal policy add-on. This add-on includes work-based driving coverage for an added cost—insuring your business-related tasks. Call one of our agents at 512-989-6006 or 844-524-4744 to help you determine if you need personal or commercial car insurance.