Streetsmart insurance Blog
If you own a vehicle in the United States of America, you are required to purchase automobile insurance to protect your car, truck, van, or SUV from potential perils. There are multiple types of auto insurance policies, but the most common policies fall under the commercial and personal auto insurance umbrellas. As their names suggest, these categories are designed to protect business owners and individual consumers whether they drive, park, or store their vehicles.
Unfortunately, consumers who own their own businesses are typically unaware of the differences between commercial auto insurance and personal auto insurance policies. These differences can have a dramatic impact on their potential premiums and will ultimately determine whether they would be better served by having commercial auto insurance, personal auto insurance, business auto insurance (a third category), or a combination of all three.
What Are The Similarities?
Commercial auto insurance and personal auto insurance are both designed to protect consumers from wide variety of perils. To provide the maximum amount of coverage possible, these policies offer two forms of basic coverage: liability and physical damage. If you get into an accident, liability coverage is designed to protect the other drivers and vehicles involved; this category provides coverage for bodily injury and property damage. Physical damage, on the other hand, is designed to protect your vehicle in the event of an accident. This coverage is provided in two distinct forms: comprehensive and collision. All 50 states require drivers to hold liability coverage, but policyholders can choose to not purchase physical damage coverage for their vehicle.
What Are The Differences?
There are plenty of differences between commercial auto insurance and personal auto insurance, including:
The Risk – Personal automobiles are typically used less than commercial vehicles, which makes it more likely that a commercial vehicle will be involved in an accident.
The Amount of Coverage – Commercial vehicles need more coverage than personal automobiles, and most states have higher minimum liability limits for commercial auto insurance and business auto insurance.
The Number of Vehicles – Personal auto insurance and business policies are designed for individual policyholders and families, while commercial auto insurance policies are designed for business owners that have multiple vehicles within their fleet.
The Price – Commercial auto insurance is typically more expensive than personal auto insurance.
Street Smart Insurance is committed to providing affordable coverage. Whether you are looking for your first commercial auto insurance policy or you are shopping for a better price, our agents are ready to help. Call us at 732-462-8343 for a free quote!