The Difference between Commercial and Personal Auto Insurance

The Difference between Commercial and Personal Auto Insurance

A car crash on Jagtvej in Copenhagen, Denmark.

A car crash on Jagtvej in Copenhagen, Denmark. (Photo credit: Wikipedia)

Insurance can be one of those incredibly confusing things. It also, however, just so happens to be one of those incredibly important things. In fact, insurance — especially auto insurance — is so terrifically important that it’s completely against the law to drive a vehicle if you’re not insured. The government is pretty clear about the fact that it really wants you to have insurance, but if you start to think about why this might be the case, it actually becomes pretty logical. When you’re driving around, there are all sorts of things that can happen and lead to an accident. Often, these situations wind up being the responsibility of one driver or the other. Even if there wasn’t any negligence, wrongdoing, or rule-breaking involved, one driver is often at fault in many instances of an accident. Sometimes there is a no-contest, but this is fairly rare. When the accident is your fault, you must have insurance so that you can cause the damage that you caused to the other driver and/or his or her car. Car accidents don’t exactly happen in a vacuum. They usually leave a pretty serious amount of property damage in their wake, and can also include very severe bodily harm. Insurance is something you’ve always got to have, but it also really helps if you understand it completely. There are a couple of different types of auto insurance, too, so we’ll talk about which version is right for you.

You might be surprised to find out that if you’re using your car (or any car) for work purposes, your personal auto insurance policy absolutely will not cover you for anything that happens. This has to be a completely specific insurance policy altogether. There isn’t too terribly much that differs between a personal and commercial policy, except that the latter is a bit more thorough in its coverage and that the two are worded differently. Commercial insurance obviously adds more options, because several employees might fall under the coverage umbrella, and there are many other things that can be insured other than just property damage, personal harm, and liability. Since there are a few more variables that can be involved in a work situation, the insurance policy will cover a bit more.

Personal auto insurance, on the other hand, is more specifically designed to simply treat you, the other person involved in the accident, and whichever of your cars needs help. There are a few options in terms of coverage that you can pick from, but all of them will coverage your personal damage, liability, and property damage to one degree of another. A site like is a great way to get the information you need on which policy is right for you. With a little bit of research it’s easy to find a great personal policy. If you’re starting your own business, then a commercial auto insurance policy will be a great way to make sure that your workers are protected, should anything go wrong on the job.

Related Posts Plugin for WordPress, Blogger...