Drivers who use vehicles for both personal and business purposes need to have a solid understanding of the types of coverage they need in each instance. The insurance experts at American Tri-Star are here to explain a few of the key differences between commercial and personal auto insurance.
A commercial vehicle is used strictly for business purposes and requires a commercial auto insurance plan, whereas personal auto insurance coverage is applied to vehicles used solely for personal reasons. The main differences between commercial and personal Vista auto insurance rest in two areas: the purpose of the coverage and the extent of the coverage.
Number of Drivers
Commercial auto coverage is typically designed for businesses with multiple drivers operating multiple vehicles, and the liability protection is usually greater than that of a personal auto insurance plan. This type of coverage assumes any employee in a particular agency might drive one of the insured vehicles at some point. In some cases, these types of policies cover ten to twenty people instead of one or two on a personal auto insurance plan.
The weight limit of a vehicle also matters when determining if you need commercial or personal auto insurance. Pickup trucks or other utility vehicles with a gross weight of more than 10,000 pounds or those that exceed a certain load capacity may require commercial auto insurance.
Extended Coverage Options
Commercial car insurance can also include additional coverage that might not be necessary for a personal auto insurance plan. For instance, a single deductible endorsement allows the insured to extend coverage to a trailer or another expensive piece of equipment used in conjunction with the main vehicle. This means businesses only need to pay the deductible once for claims on the vehicle and the trailer. Some agencies might need trailer interchange insurance, which covers trailers you don’t own that your vehicle tows.
You might also need commercial auto insurance in Vista if:
- You use your vehicle for delivering food, newspapers, or other materials and supplies pertaining to your business
- Your vehicle is used as a livery or taxi service
- Any of your vehicles are owned, leased, or titled to a corporation or business
Whether you’re looking for personal or commercial car insurance, American Tri-Star offers complimentary online auto insurance quotes Vista vehicle owners are sure to appreciate. You can also receive a free quote on auto, motorhome, homeowners, and business insurance by calling one of our agents at 760-758-1600. Get in touch with us today and we can help you select the policy that best suits your needs.