The Difference Between Commercial Auto and Personal Auto Insurance
When it comes to protecting vehicles, auto insurance provides that extra security motorists need if their automobiles ever meet an unfavorable situation. However, many insurance companies offer two kinds of auto insurance: commercial auto and personal auto insurance. Although both policies share similar benefits, their applications aren’t the same. To determine whether you need commercial auto insurance or personal auto insurance, you need to answer these 3 questions first:
Who Owns the Vehicle?
If you want your personal car, truck, or SUV insured, personal auto insurance is what you’re looking for. Commercial auto insurance is tailored for vehicles owned by businesses and industries.
How is it Being Used?
If you use your vehicles for business purposes, then you’ll need commercial auto insurance. If you’re the type of motorist who uses your car for commuting purposes, personal auto insurance will suffice.
What’s the Type and Weight of the Vehicle?
If the type of vehicle you’re driving is heavier than a normal size pickup truck or SUV, you might need to consider getting commercial insurance. Bigger vehicles can cause more damage if they’re involved in accidents, so they require special insurance coverages. In addition, several insurance providers offer auto insurance policies that cover specific vehicles. Some examples include:
- Bus insurance
- Truck insurance
- Trailer insurance
- Van insurance
After answering these questions, you probably know which auto insurance policy suits your vehicle. However, before you inquire with your insurance company, it’s good to know what each insurance covers.
Commercial Auto Insurance Coverage
Commercial auto insurance perfectly suits all kinds of industries that utilize a vehicle. This insurance has several policy forms, which include:
- Garage – for public repair shops, dealerships, attended parking lots, or any other establishment that take care of other people’s vehicles.
- Business Auto – for commercial cars, pick-ups, small and large trucks, dump trucks, or ambulances.
- Motor Carrier – covers nuances of independent operator systems.
Commercial auto insurance also covers specific damages and losses, such as:
- Damage from collision
- Damage from non-collision (e.g. theft, vandalism, etc.)
- Liabilities resulting from death, bodily injury, or damage to other people’s property
- Personal medical or injury payments of the insured
- Property damage or injury caused by hit-and-run and/or uninsured motorists
Personal Auto Insurance Coverage
Personal auto insurance offers several types of policies, but the most common are:
- Collision Coverage – pays for the repairs of your car if it’s caught in an accident.
- Liability Insurance – covers the repairs, medical bills from resulting injuries, and other damages and losses if the accident was your fault.
- Comprehensive Coverage – covers the damages and repairs of your vehicle in situations other than collisions (e.g. theft, flying or falling debris, damage caused by wild animals, etc.)
- Personal Injury Protection – this policy covers your medical bills, as well as your passengers’ – no matter who’s at fault. This insurance, however, isn’t available in every state.
- Uninsured or Underinsured Motorist Protection – if the one at fault can’t cover the damages done to you or your vehicle, this policy will help cover the additional expenses. This also helps if the one at fault doesn’t have any insurance, and it protects you if you are hit as a pedestrian.
Other insurance agencies also offer other policies like Direct Compensation Property Damage (DCPD) coverage and family protection coverage, but it’s up to you if you want them or not.
Looking for the best personal auto insurance or commercial auto insurance in Houston and Cypress Texas? Contact Low Cost Insurance today. Our expert and friendly insurance providers can set you up with a comprehensive auto insurance plan that fits your budget and vehicle’s needs. Just give us a call at 281-612-7178 so we can get started.
