What’s the basic difference between personal auto insurance and commercial auto insurance in CT? When a vehicle is not only a personal vehicle but is used for commercial purposes as well, the fine line between the two becomes pretty blurry. For work purposes, personal vehicles are used by numerous employees/owners especially where small businesses are concerned. They may deliver goods, transport equipment, travel to job sites, and more, using their own car.
For the most part, business use is almost always excluded with personal auto insurance policies. So, with the exception of your commute to and from work, while driving for work, if you’re involved in an accident, you might not be covered.
We’re going to examine auto insurance coverage involving several different types.
Personal Auto Insurance
If you’re driving your vehicle for personal use, and you get into an accident, the only thing that covers you is personal auto insurance. That includes driving for things not related to your job duties and it includes commuting to and from work.
Business use is not covered by your personal car insurance in most cases. Don’t be surprised if your claim is rejected when driving for work ends up in an accident and all you had was personal car insurance.
Non-Owned and Hired Auto Insurance
This kind of insurance is purchased by some businesses when personal vehicles are used for work errands, etc. If your business leases or rents a vehicle, it provides protection. Additionally, if, while driving a personal vehicle for the purpose of work, you’re involved in an accident, it provides liability coverage.
This policy does not cover physical damage, but rather, only accident-related legal bills. Example: If your vehicle is damaged in an accident, it won’t pay for repairs.
Who should consider this type of insurance? You might want to check into this coverage if:
- Your company leases vehicles
- For a business trip, you rent a car
- Personal vehicles are used by your employees to run work errands
Commercial Auto Insurance
Who owns the vehicle? The answer to that question is the main difference between commercial and personal auto insurance. It needs to be covered by commercial auto insurance if your business owns the vehicle. Property damage, bodily injury, and legal expenses related to auto accidents are paid for by both commercial and personal auto policies. But commercial auto insurance frequently takes care of different vehicle types, higher claims, and other legal issues that can be extremely complex.
Commercial auto insurance most often includes all the employees of a business as additionally insured individuals. In other words, they can drive your company vehicle if they have a valid driver’s license. Remember, however, the deductible, a policy’s coverage limits, and more, can be affected by the driving records of your employees.
Are You Looking for Commercial Auto Insurance in CT?
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Contact us today. We’ll take whatever time is needed with each client to answer any questions and explain our insurance brokerage system.
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