There are many people that have a misunderstanding about how personal auto insurance differs from business auto. While it may be confusing for some, you need to know whether you need personal auto or business auto insurance before you are left in a situation where your coverage may be denied. Imagine you are jump starting a small electrical business and you are using your van for personal use as well as going to work appointments. Do you know whether your standard auto policy provides the right type of coverage for you when you are at job site? Or will coverage be denied if you cause an auto accident while traveling to do an electrical job?
Common Ways to Establish Which Type of Auto Insurance You Need, but Not Limited to:
If you are using your vehicle for personal use along with business use, it is essential to have adequate insurance protection, so here are some typical considerations when assessing your unique situation:
Type/Size of Vehicle Being Used- Does your business require the use of a van, SUV, trailer, tow truck, or pick up? If so, you may need a commercial auto insurance policy to adequately protect you. The weight of a vehicle is a pertinent factor when considering the amount of damages that can come from a heavier vehicle.
However, if you are using a car, a small SUV, or small truck, your personal auto policy may be enough. If you are unsure, it is always recommended you contact your local N.Y. independent insurance agent to discuss.
Who Drives the Vehicle- Will you be the only person driving the car for business use? Or will there be multiple people using it in the scope of business? Is it a situation where “sometimes” a person drives it for work purposes? Is the vehicle registered under your name or the company name? These are all questions you need to consider when establishing the right type of auto insurance protection.
Ways Your Vehicle is Used- If you use your vehicle for both personal and commercial use, consider how much you are using your vehicle for one or the other. If you are using your vehicle primarily for business use, then a commercial auto policy is recommended.
Limits of Liability- If you transport a lot of business equipment, have a heavy vehicle, and primarily use your vehicle for business purposes, you will need a higher limit of liability for your protection; thus, requiring a commercial auto policy. All these factors point towards the need for a business auto policy versus a typical auto insurance policy.
Personal Auto Vs. Business Auto Insurance Simplified
The main difference between a personal auto policy and commercial auto insurance lies with the intent of your vehicle usage and your unique needs. Obviously if you are using your vehicle as personal transportation and rarely (if any) using it for anything business wise, then a typical auto insurance policy should provide the right type of insurance protection for your needs.
However, once your vehicle is being used for a commercial business, immediately you have increased your risk and liability needs and therefore, a business auto insurance policy better suits your needs. A commercial insurance policy provides more expansive coverage options with higher limits of liability as to better protect you.
Cameron Group Insurance Can Help Today!
If you still are unsure whether you need a commercial auto policy, let us help. Below are some questions you need to answer or consider before calling us so we can address your auto insurance needs entirely.
- Does your auto require or need higher limits of liability?
- Does your vehicle weigh 10,000 pounds or more?
- To whose name is the vehicle registered?
- Do you rent or lease your car to anyone?
- Do other people drive your car for business purposes?
- Do you transport goods or products to others?
- Is your vehicle custom built for business purposes, such as toolboxes or lifts?
If you answered “yes” to any of the listed questions, you may need a commercial auto insurance policy. We can assist you with all your N.Y. personal and/or business insurance needs. Our main objective is to provide the right type of insurance protection for your specific needs so contact our offices today at 845-627-2130.