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Personal Auto vs. Commercial Auto

This is a big one for those self-employed people out there! Whether you are a handyman or a caterer, you need to know that your personal auto insurance will most likely not cover accidents related to work in your vehicle.

Commercial car insurance policies cover the increased liability risks that arise from daily business operations. If you transport supplies/goods or people and an accident occurs, you (and your insurance policy) would be liable for any damages.

There are many differences between commercial and personal auto insurance, but the main differentiation is the extent (higher liability limits, etc) and purpose of coverage. Businesses have many concerns private individuals don't share.

Even if you use your Ford F250 or Hyundai Sonata for personal uses like supermarket runs, road trips, or nights on the town it may be a commercial vehicle if you also use it for work purposes other than commuting.

Car insurance companies consider commercial auto insurance and personal car insurance to be 2 very different types of policies due to the differences in liability and risk. Personal policies are written with the average private citizen and their needs in mind, while commercial policies are designed to address the unique needs and situations that arise from commercial use.

If you have any question as to whether you should have personal or commercial coverage, contact your agent so you get answers and the appropriate coverage!