The Difference Between Auto Insurance & Commercial Auto Insurance

Commercial Auto Insurance

What exactly are the differences between regular auto insurance and commercial auto insurance? One is primarily for individuals, the other for companies with fleet vehicles.

In a nutshell, commercial auto insurance is ideal for those vehicles that are to be used exclusively for commercial or business purposes. Regular auto insurance, on the other hand, is for those vehicles that are used primarily for personal reasons.

Determining if You Need Commercial or Regular Auto Insurance

If you are unsure whether or not your vehicle should be under commercial auto insurance coverage instead of personal coverage, here are some indicators. Go with the commercial auto insurance if:

  • You are transporting people and goods for a fee
  • You are carrying around equipment used in your business
  • You are using your vehicle to tow a trailer that carries equipment for your business
  • You are using the vehicle to constantly meet up with clients
  • Your vehicle is actually owned by your business and is registered under it or it is owned by the company you work for
  • Your employees use the vehicle and it is registered in your company’s name

In addition, the size and weight of your vehicle play a role in whether or not it should be covered by personal or commercial insurance. If your vehicle is bigger and heavier than a regular SUV or pickup truck, it is usually seen as a commercial vehicle that needs to be covered by commercial auto insurance.

Differences in Coverage Between the Two

There are distinct differences in the coverage that you get between these two auto insurance types. First and foremost: The liability coverage of commercial auto insurance is higher than personal auto insurance. It also comes with property and liability trailer exposure, hired vehicle coverage, non-owned vehicle coverage, loading and unloading exposure, and much more. These are not the kind of stipulations you will find with personal auto insurance.

Of course, the price of these two insurance types will also differ from one another. Commercial auto insurance will usually cost more than personal auto insurance. Aside from the higher risk of accidents due to more time on the road, the size, weight, use, and cost of the vehicle in question will also come into play when pricing is considered.

Contact Quote Commercial for Your Commercial Insurance Needs

In Texas, when you need to have your company’s vehicles covered by commercial auto insurance, the company you should contact is Quote Commercial. We have comprehensive coverage for companies that require this type of policy. We also offer other commercial insurance policies that your business may need, such as workers’ compensation, commercial liability, and commercial property insurance.

When you need commercial insurance in Texas, don’t hesitate to contact us at 844-331-7076. Our friendly and knowledgeable operators are on standby to help you and to answer your questions.