Commercial vs. Personal Auto Insurance

The line between personal and commercial auto insurance can sometimes seem blurred, especially for small business owners, freelancers and professionals who use their vehicles for personal and business purposes.

Understanding the differences between these two types of coverage is crucial for ensuring you’re adequately protected, no matter how you use your car. Contact Betzy Insurance today to learn more about getting appropriate auto insurance coverage for your situation.

The Difference Between Personal and Commercial Car Insurance

At its core, personal auto insurance is designed for individuals using their cars for personal reasons, such as commuting, leisure activities, family transportation or errands. Commercial auto insurance is for vehicles used while conducting business or owned by a company. While both types offer similar forms of coverage—such as liability, comprehensive and collision—the specifics can vary greatly depending on the insurer and policy.

No matter why they use a vehicle, all Indiana drivers must maintain minimum auto liability insurance according to state laws. Companies that use vehicles for business may also be subject to federal auto insurance regulations, depending on where they travel and their vehicle type.

Your agent may advise you to purchase more than the minimum required amount of personal or commercial auto liability coverage to help provide the right amount of financial protection.

In some cases, it may be necessary to purchase commercial auto insurance for a personal vehicle. You may need commercial auto insurance if you participate in a ridesharing service or use your car for business purposes. Consult your agent to understand local and state auto insurance requirements.

Additional Coverages in Commercial Auto Insurance

Commercial auto policies can include several additional coverages tailored for business needs, such as the following:

• Hired and non-owned liability coverage
• Cargo coverage
• Bobtail coverage
• Equipment coverage
• Garage keepers liability coverage

Your agent can help you tailor a commercial auto insurance policy to meet the needs of your unique business.

Auto Insurance Premiums

Insurers use various data points to help determine auto insurance rates, including the following:

• Claims history
• Location
• Type and value of the vehicle
• Driving record
• Coverage types, limits and deductibles

Contact Us

Understanding whether you need personal or commercial auto insurance—or perhaps both—is crucial for adequate protection. At Betzy Insurance in Indianapolis, Indiana, we make it our mission to guide you through getting appropriate auto insurance coverage.

Contact us today to start building your customized auto insurance plan 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.