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Commercial Auto Coverage
By
The #1 Commercial Auto and Truck Insurer*
What is a Commercial Auto policy?
Is a form of auto insurance that includes special coverages designed for commercial use. While many of the coverages included in commercial auto insurance are similar to the coverages in a personal policy, the coverage limits are generally much higher to accommodate the higher legal risks often associated with private enterprise.
Who needs Commercial Auto Insurance?
Anyone driving for business reasons needs commercial auto insurance. If you’re delivering anything or anyone, you absolutely need it. Personal auto insurance specifically excludes what’s called “livery” vehicles. Additionally, if the vehicle is titled in the name of a business, you have to have commercial insurance.
What is the difference between Commercial and Personal Auto Insurance?
The differences between personal and commercial auto insurance are important and could save you from paying thousands of dollars in damages due to inadequate or non-applicable auto insurance.
Personal Auto Insurance only covers you when you’re driving the car for personal reasons. This insurance will cover you as you drive to and from work, as well as on your lunch break.
If you are driving while on the clock, your personal policy will not apply. So if you get in a wreck while driving at work, you won’t have any coverage unless you have commercial auto insurance.
Commercial auto insurance covers you for any duration of time in which you’re driving for work purposes.
On commercial policies, liability limits are available at higher amounts. Personal auto policies max out at $500K.
Another big difference is that commercial policies offer more coverage for supplies and equipment and also provide coverage for the delivery and/or transport of goods and/or people.
Commercial auto insurance also provides non-owner vehicle coverage. This coverage is used when employees need to drive their own vehicle or a rented vehicle while at work.
*No. 1 commercial auto and truck insurer from SNL Financial's 2017 national written premium data.
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