What Are the Differences Between Commercial and Personal Auto Insurance?

Commercial and Personal Auto Insurance in San Diego, CA

Personal and commercial auto insurance are two very different things, and it’s important to make sure you have the right one for your driving needs. San Diego auto insurance experts can verify if your coverage is correct and help you understand some of the differences between these two insurance products. Here are just a few of those differences you may come across.

Number of Drivers Covered

Personal auto insurance policies require you list the person who drives the car most often, also known as the primary driver, as well as any occasional drivers. In a commercial setting, any number of different people employed by the agency could potentially drive the vehicle. The result is commercial insureds don’t have to list every driver by name, but will pay a higher premium as a result.

Equipment Protection

Ladder racks, toolboxes, plow blades, and other items attached to your vehicle may be covered after an accident if you have a commercial car insurance policy on the vehicle. Personal auto insurance, however, may not cover these items if the vehicle and equipment are clearly used for business purposes.

Shuttling People and Goods

People who don’t drive for a living often have other passengers in their cars, but cab drivers, limo drivers, and other driving service providers need commercial insurance to protect their passengers. If you’re getting paid to move someone from Point A to Point B, a personal auto insurance policy is inadequate. The same is true when moving commercial goods in your vehicle.

Rental Versus Borrowed Vehicles

Businesses that rent out cars for a living will want to have a commercial auto insurance policy to cover all of the vehicles. A cheap San Diego car insurance policy may cover you if you let a friend borrow your car for a day, but this is a much different scenario than being in the car rental business.

Carrying Hazardous Materials

If you regularly carry hazardous materials in your vehicle, you’ll need to purchase a commercial auto insurance policy. This doesn’t apply to filling the occasional gas can for your lawnmower and transporting it in your trunk, as this is an activity you likely don’t do often.

Whether you need insurance to cover your personal automobile or multiple commercial vehicles, you’ll want a policy that will be affordable and give you peace of mind. To learn more about affordable solutions for auto, motorcycle, and RV insurance in San Diego, call American Tri-Star at 619-272-2100. We hope to hear from you soon.