What makes the coverage offered by commercial auto policies so different from personal ones?

If you run a business and use company vehicles to carry out your operations, then you need to protect your vehicles and employees with the right commercial auto insurance.  But why can’t you just insure company cars on a personal auto policy?  Here’s what you need to know about these different forms of coverage.

In actuality, personal and commercial auto insurance are 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 issues, 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.

There is also a special form of commercial auto insurance designed to cover heavy-duty vehicles.  Because heavy vehicles cause more damage in an accident than light vehicles, they need higher liability coverage limits.  So, if your business owns things like minibusses, cement mixers, semi-trucks, tow-trucks, and so on, then talk with your commercial insurance provider to make sure you have the right amount of coverage.

Please note that commercial auto policies are more expensive than personal ones.  This is because commercial auto policies offer higher liability coverage limits than personal policies.  Additionally, this higher cost is also due to the fact that commercial auto policies usually cover more cars and drivers than personal ones.

This is what you need to know about commercial auto insurance.  Do you have more questions about this important type of business insurance?  If so, then contact the experts at Weaver & Associates in Arcadia, California. We are ready to assist you with all your insurance needs today.