The biggest difference between commercial auto insurance and personal auto insurance is obvious: One is for vehicles used commercially while the other is for vehicles used personally. Other differences are more nuanced.
Because the risk associated with commercial vehicles is often different, commercial auto insurance policies can be more involved. The things that will affect a commercial auto insurance policy are:
- The number of vehicles insured.
- The type/class of vehicles insured.
- The amount of time the vehicles are on the road.
- The number of drivers on the policy.
- The driving history of the drivers on the policy.
Like personal auto insurance policies, commercial auto insurance policies can be as basic as accident liability auto insurance, or as robust as comprehensive auto insurance. Businesses can also choose to add additional important features to their policies, including uninsured driver coverage and roadside assistance coverage.
Similar to personal auto insurance, commercial auto insurance rates can go up if you or your employees get into accidents when driving company vehicles. When hiring drivers, it’s important to look into their driving records, and to provide proper training.
It’s also important for businesses to make sure that all drivers are added to their insurance policy, and that all drivers have the correct licenses for operating your commercial vehicles. Failure to do so may result in loss of coverage.
Do You Need Commercial Auto Insurance?
Did you know that in the state of California, any vehicle used to transport employees is required to have commercial auto insurance? For more information about whether you need commercial auto insurance, read this post: Do I Need Commercial Auto Insurance?
This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.