Personal Auto vs. Commercial Auto Insurance: What’s the Difference and When Do You Need It?

Driving a car for personal use is very different from using one for business. The same goes for how those vehicles are insured. If you’re unsure which coverage you need, Always Affordable Insurance can help you understand the purpose and details of personal and commercial auto insurance.

What Is Personal Auto Insurance?

Personal auto insurance may cover vehicles used for commuting to work, running errands, taking road trips and other personal activities. It may often include liability coverage, as well as collision and comprehensive coverage, and sometimes uninsured motorist protection. This type of policy is meant for individuals or families who use their vehicles outside of work-related tasks. Personal policies don’t cover business use. If you use your car for commercial purposes, it may void your personal coverage.

What Is Commercial Auto Insurance?

Commercial auto insurance may cover vehicles used in business operations. This includes anything from a contractor’s pickup truck to a delivery van or rideshare vehicle. These policies often offer higher liability limits and may cover policyholders who own or operate multiple vehicles for business purposes. A commercial policy is likely required if your car is titled in a company’s name or regularly used to transport goods, tools or clients.

Auto Insurance in Las Vegas, NV

Always Affordable Insurance can evaluate your situation and recommend auto insurance appropriate for your needs. Contact us today to get started.

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.