business auto insurance vs personal insurance
Not sure whether you need a personal or business auto insurance policy?
Here are 4 things to consider when deciding what kind of insurance policy you need, but first we need to introduce you to the word Commercial Auto Insurance as that is insurance industry geek speak for what most business owners refer to as business auto insurance.
- Who Owns and Drives the Vehicle - If your vehicle is owned by a business, most likely, you'll need a commercial auto insurance policy. If you're a sole proprietor, you might only need a personal auto insurance policy. The type of policy you need also depends on how often the vehicle is used and what it's used for.
- How the Vehicle is Used - If you use your vehicle for business purposes, you'll probably need a commercial auto insurance policy. If you're a sole proprietor who only travels to 1 or 2 job sites a day, or just use your vehicle for commuting, you might only need a personal auto insurance policy.
- The Type and Weight of the Vehicle - If the vehicle you drive is heavier than a normal size pickup or SUV, like a dump truck, tow truck, or semi truck and commercial trailer, you might require a commercial auto insurance policy. Heavy duty vehicles can cause more damage if they're involved in an accident and sometimes require special insurance coverages.
- Required Business Liability Limits - If your business vehicle requires higher liability limits, you will probably need a commercial auto insurance policy. Commercial auto insurance policies typically offer higher limits than personal auto insurance policies.