Knowing the difference between personal and commercial auto insurance could mean the difference between saving thousands, or breaking the bank.
If you don’t operate an entire fleet of vehicles under your company, you may never have given commercial auto insurance a thought. But, it’s possible you may need a commercial auto insurance policy even if you don’t have a single vehicle under your company’s name. This goes double if you use your own car for work purposes other than commuting. To help clear up the confusion, here are the differences between personal and commercial auto insurance policies.
Transporting Things
Personal car insurance typically won’t pay to repair damage or even treat injuries if you are transporting people or goods for money. Driving with friends to a concert, or grabbing food, or taking road trips (normal things) are covered. But if you use your car to deliver a pizza or use it to transport people like in an Uber, you need commercial car insurance.
Not About Where You Drive, But Where
There’s no limit to how much you can drive or even where, as long as the reason is personal. But if you are an assistant to the regional manager and have to check on sales with clients, you likely need commercial auto insurance to cover any damages in the event of an accident.
Are You Hauling Anything?
If you’re transporting pizza to your friend’s house to hang out, you’re covered under your personal policy. If you’re a construction worker, however, and hauling heavy tools and a ladder and expensive drills, you won’t be covered unless you have a commercial auto insurance.
Your business’ cars need to have commercial auto insurance for the sake of your business’ life. To get the policy that’s right for you, contact CV Mason Insurance Agency in Bristol, Connecticut. We will work with you to ensure you have the right amount of coverage, all at the right price to fit your budget.
