If you rely on company vehicles to complete your work operations, then you need the protection offered by commercial auto insurance. Even if your employees are using their personal cars for work purposes, you also need this coverage. This is because their personal auto policies will not offer the coverage that they need. But why is this, and what makes personal and commercial auto insurance so different? Here’s what you need to know.
If your employees use their own cars for business, then you may assume that their insurance will offer them coverage in the event of an accident. Unfortunately, this isn’t the case. This is because personal auto policies specifically exclude coverage for the accidents and damages incurred while the vehicle is being used for business purposes. So, the only way to protect your staff’s vehicles is with commercial auto insurance.
In actuality, personal and commercial auto insurance is not that different. In fact, both types of insurance essentially offer the same types of coverage. For instance, personal and commercial auto policies both offer coverage for collision, comprehensive, liability, and so on. The main difference between these two forms of insurance is the amount of liability coverage each offers. Because businesses have more assets and face a higher risk for liability lawsuits than individual drivers, commercial auto insurance policies have much higher liability coverage limits than personal policies. Additionally, commercial policies are also equipped to cover a wider array of vehicles, such as delivery vans, shipping trucks, as well as standard cars.
This is what you need to know about the difference between personal and commercial auto insurance. Do you need help securing coverage for your company vehicles? If so, then contact the experts at Phocus Insurance in Phoenix, Arizona. We are ready to assist you with all your business insurance needs today.
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