Differences Between Commercial and Personal Auto Insurance

While commercial and personal auto insurance policies are designed to provide financial protection from the effects of vehicle-related accidents and incidents, they cater to different needs and situations.

Coverage Purpose

The primary distinction between commercial and personal auto insurance lies in the purpose of the vehicle usage. Personal auto insurance is designed for vehicles used primarily for personal activities, like commuting and leisure. Commercial auto insurance is intended for company-owned vehicles and those used for business purposes, including transporting goods or employees. 

Types of Vehicles Covered

The types of vehicles covered by each policy can vary significantly. Personal auto insurance typically covers standard passenger vehicles, SUVs and motorcycles. Commercial auto insurance is designed to help cover a broader range of vehicles, including trucks, vans and specialty vehicles used for business.

Premium Costs

Cost is an important factor when considering your options. Personal auto insurance is generally more affordable due to lower coverage limits and fewer risks. Your premiums are affected by your driving and claims history. People with moving violations and multiple claims typically pay more for car insurance. Commercial auto insurance may be more expensive due to the higher risk associated with business use and larger coverage limits.

Additional Coverages

Both types of insurance offer various coverage options, but they may differ in focus. Personal auto insurance includes options like comprehensive, collision and uninsured/underinsured motorists’ coverage. Commercial auto insurance may consist of specialized coverages such as cargo insurance, hired and non-owned auto coverage and business interruption insurance.

Learn More

Contact Baker Insurance Group Inc. in Fort Myers, Florida, to learn about your auto insurance options and get a quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.