Is Commercial Auto Insurance Less Expensive Than Personal Auto Insurance?

When shopping for auto insurance, you may be wondering if it’s less expensive to purchase commercial auto or personal auto insurance.

The type of insurance you choose will depend on how the vehicle is being used. Typically, commercial auto insurance is more expensive than personal auto insurance. This is because commercial auto insurance often includes more coverage than personal plans. Additionally, it’s crucial to note that business-owned vehicles are mostly required to carry commercial auto insurance.

Commercial Vs. Personal Auto Insurance

There are several key differences between commercial and personal auto insurance. Both personal and commercial auto policies offer coverage for injuries, legal fees, bodily injury, and property damage related to auto accidents. However, both differ in cost which will vary depending on (not limited too) what the vehicle is being used for, territory driven, safety programs, credit, driving records, etc.  As mentioned above, if a vehicle is owned by a business, most of the time a commercial auto policy is required. 

A commercial policy will insure the employer for claims that occur while employees (who have been approved to drive via good driving records) are involved in an accident while in the course of working.  Additionally, commercial policies often provide far more coverage than personal plans including higher liability limits, specialty endorsements such as Waiver of Subrogation, Primary Non-Compensatory and broadening endorsements to meet requirements of business contracts. Personal policies primarily insure non-business risks and have much lower liability limits. 

Which Type of Insurance is Best for You?

When deciding which type of auto insurance is right for you, you need to consider what you will be using the vehicle for. If you are using a personally owned vehicle for work-related purposes, it is possible to purchase a personal auto plan, but this is only a viable option if you are the only driver and if you are using it for “acceptable business use” according to the insurance carrier. If the vehicle in question is being used by employees of a business, then commercial auto insurance is necessary to ensure that every driver is covered in the event of an accident.

Auto Insurance with Insurance Risk Advisory Group

When deciding between commercial and personal auto insurance that offers comprehensive coverage that fits your needs, get in touch with Insurance Risk Advisory Group.