Many business owners or independent contractors use their personal vehicle for work-related driving. However, there is a difference between commercial insurance vs personal auto insurance. That difference can cost you a lot of money if you aren’t properly insured and get into an accident.
If you own or lease a car, you understand that the law requires you to have auto insurance. These policies cover bodily injury and property damage at minimally for the other party, e.g. liability only. However, these same policies may not cover you or your vehicle if you are in an accident while transporting goods, people or conducting business. Without proper insurance protection, you can be personally responsible for repair and medical bills.
People are using their personal vehicles for work more and more with the rise of the gig economy and independent contracting. Whether you have a fleet of vehicles your employees operate or use your personal vehicle to deliver goods, you need a commercial auto insurance policy. The commercial policy covers your business, the driver, the vehicle and the other people involved.
Knowing when to have a commercial insurance vs personal auto insurance policy can save you time and money. There’s nothing more heartbreaking than thinking you have the right coverage to discover you don’t after the accident has already happened.