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9 April, 2020 0
commercial van on the road, personal vs. commercial auto insurance

How are Personal and Commercial Auto Insurance Different?

Personal versus commercial auto insurance.

As a business owner, you know how important it is to protect your company with the right commercial insurance in Los Angeles.  This is why, if your business owns company vehicles, you need to protect against auto accidents and liability claims with the right commercial auto coverage.  But what is commercial auto insurance, and is it comparable to personal auto policies?  Here’s what you need to know.

The Difference Between Personal and Commercial Auto Coverage

When you compare personal and commercial auto policies, you’ll notice that both types of insurance offer similar forms of coverage.  For instance, both personal and commercial auto policies will offer coverages such as collision, comprehensive, bodily injury liability, property damage liability, medical payments, and so on.  The main difference between these two types of insurance is the amount of coverage that they offer.  Because businesses face higher liability risks and have more assets to protect than individuals, commercial auto policies offer higher coverage limits and are designed to cover more complex legal issues.  Additionally, because businesses can use standard cars, vans, and even delivery trucks, commercial auto policies are designed to cover a wider array of vehicles than personal car insurance.

Commercial Auto Insurance Coverage

Commercial auto insurance is designed to cover accidents that occur when you or your employees are using a vehicle for business purposes.  While this coverage obviously encompasses company-owned vehicles, it can also extend to your employees’ personal vehicles when they are using them for business-related purposes.

Any business that routinely uses vehicles to carry out operations needs commercial auto insurance.  This includes businesses that handle the following:

  • Transporting goods or equipment
  • Delivering goods or services
  • Driving around clients or employees
  • Renting out company vehicles for client use
  • Hauling work-related loads
  • Towing trailers used for business purposes

Cost of Commercial Auto Coverage

Your commercial auto insurance premiums are based on a variety of factors.  For instance, the following will influence the cost of your coverage:

  • Type of insurance you need (regular commercial auto vs. hired and non-owned auto insurance)
  • Where your business is located
  • How much you drive
  • The demographics of the covered drivers
  • Driving records and claim histories of the covered drivers
  • Type of driving (transporting goods, delivering packages, driving clients, or so on)
  • Type of vehicles your company owns
  • Safety features installed in company vehicles
  • Amount of coverage you secure
  • Deductibles that you set

This is how commercial auto insurance differs from personal car insurance policies.  Do you have additional questions about your commercial insurance in Los Angeles?  If so, then contact the experts at Fuller Insurance Agency in Southern California.  We are ready to assist you with all your business insurance needs today.

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