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Personal carPersonal and commercial auto insurance cover different types of driving. Both policies cover you for medical bills and property damage, but your personal insurance won't cover you for accidents that occur during business-related driving. Learn the basics of auto and commercial insurance and how to tell if you need commercial auto insurance.

Personal Auto Insurance

Personal car insurance is required in every state except New Hampshire and covers personal use of the insured vehicle. Whether you're traveling across the country on vacation or picking up groceries, you are covered in the event of an accident. Also, if you travel back and forth to a job, that's handled under personal auto insurance.

Commercial Auto Insurance

Business owners often are confused about how to cover vehicles used for business purposes. Commercial insurance is designed for small businesses and people who use their car for work, such as delivery and transportation drivers.

Higher liability limits on commercial policies protect your business assets as well as your employees. Most personal auto insurance plans don't have enough coverage to protect a business against liability and property damage. However, commercial insurance pays for accidents experienced by an employee in a work-related accident.

Who Needs Commercial Auto Insurance?

If you use your car for your business or have a vehicle used solely for business, you need commercial auto insurance. Find affordable business vehicle insurance to meet legal requirements in your state. Also make sure you have enough coverage to pay for bodily injury and property damage for drivers and passengers in your commercial vehicles. If you or an employee causes an accident, you need liability insurance that covers the other car, driver and passenger too.

Some businesses use commercial vehicles to haul products and equipment, transport others for money or get to freelance jobs. Personal insurance may not provide adequate protection for the risk associated with more time on the road.

If you drive for food delivery or ridesharing services such as Uber, you might also need a commercial auto policy. Perhaps you drive clients around as part of your real estate business or drive long distances to jobs in other areas. In these cases, commercial insurance gives you additional protection in case of an accident.

If you aren't sure which insurance is right for you, schedule time to discuss what you do compared to what's covered under each policy.

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