Commercial Auto vs. Personal Auto

The difference between these two insurance types is sometimes unclear, and it’s not always easy to decide what’s fitted better. 

It’s only up to the car owner. In what way is the car being used, for; business or personal? Answering this question will show which car insurance to get. However, there are instances that the purpose of the car depends on the situation.

What Does Commercial Auto Insurance Cover?
Commercial auto insurance costs more since it covers more liabilities than personal auto. Owners of vehicles being used for business mostly need this type of car insurance.

Nonetheless, this insurance typically covers employees who have been permitted to drive the vehicle for business purposes. It helps pay the costs of accidents by an employee even if the car was used for personal reasons.

There are so many ways that cars are being used where this insurance can still cover. These are goods or equipment transportation, performing paid service, heavy work-related loads, and driving passengers for compensation using a personally owned vehicle.

What Does Personal Auto Insurance Covers
Personal auto insurance covers only the accidents done while driving a private vehicle for personal reasons. What differentiates it from commercial auto insurance is that it doesn’t cover accidents for business reasons and therefore it costs less.

What is Better, Commercial Or Personal Auto Insurance?
It is not hard to distinguish what to choose between the two types of car insurance. If the main purpose of the car is clear, then it will be easier to know what is better for it. It’s just a matter of cost that is also made because of the difference in their liabilities. There are situations where personal auto insurance is better, but it is always limited compared to commercial auto.

Conclusion
Most of the time, insurance with more benefits costs higher than the lesser ones. And costing is one of the main reasons for indecisiveness in choosing the best and fitted one that we’ll take. However, thinking of scenarios where we may use it for an emergency may also help determine its worth.

At CSIS Insurance Services, Inc., we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (888) 501-2747. Get your free quote today by CLICKING HERE.