Personal vs. Commercial Auto Insurance: Which One Do You Need?
Many small business owners and self-employed professionals drive for work without realizing their personal auto policy may not fully cover them. Knowing the difference between personal and commercial auto insurance can help you avoid a denied claim or a coverage gap.
What Personal Auto Insurance Is For
A personal auto policy is designed for everyday driving: commuting, running errands, and road trips. Many personal policies limit or exclude certain business uses of a vehicle.
When You May Need Commercial Auto
You may need a commercial auto policy if:
The vehicle is titled or leased in your business's name
You haul tools, equipment, or materials for jobs
You transport clients, products, or goods
Employees drive the vehicle for work
You drive a work truck, van, or specialty vehicle
Your contracts or clients require specific commercial limits or certificates of insurance
What About Employees Using Their Own Cars?
If employees run errands or visit clients in their personal vehicles, your business could still be pulled into a lawsuit after an accident. Hired and non-owned auto coverage can help protect your business in those situations, and it can often be added to a business policy.
Rideshare and Delivery Drivers
Driving for a rideshare or delivery app is a special situation. Coverage can depend on whether the app is on and whether you've accepted a ride or order. Ask your agent about rideshare options so you're not left with a gap.
Not Sure Which You Need?
Tell us how you use your vehicle and we'll help you figure out the right fit, whether that's personal auto insurance, commercial auto, or both. Call (818) 459-3400.
This article is for general information only. Coverage is subject to policy terms, conditions, and availability. Amik Gasparyan Insurance Agency, Farmers Insurance agent, CA License #6014107.