Evident by the names, commercial auto insurance and personal
auto insurance aren’t the same. One is meant for your own vehicle, while the other
is meant to cover your business (or commercial) vehicle. However, the
difference between the two is actually quite subtle. Personal auto insurance
covers occurrences that are insurable, such as collision costs, bodily injury,
theft, uninsured motorist claims, and property damage liability when caused by
your personal vehicle.
There is a different set of liabilities commercial auto
insurance covers. For example, imagine the person riding with you in your car
isn’t a family member or friend, but instead is a client that’s paying you to
take them somewhere. Or imagine your car being stolen with business supplies
and equipment in it, which are owned by the client you are driving. In both of
these situations, the cost for replacing the stolen items and loss of business
resulting from the insurable incident might have a great impact on the claim.
The liabilities and potential cost of claims can be very
different depending on whether your vehicle is commercial or personal. One more
scenario to consider is if you have employees driving your commercial vehicle
while on the clock. Your personal auto insurance won’t cover claims if
something happens, and their personal auto coverage probably won’t either,
which leaves your business exposed.
To find out more about personal and commercial auto
insurance or to receive a Houston
auto insurance quote, contact us.
