Personal vs. Commercial Auto Insurance

Buying car insurance could be tricky especially if you don't know what coverage is right for your needs. Mainly there are two options available: coverage for personal and commercial auto. If your car is owned by a business or if you use it mainly for business purposes, then you might require commercial insurance; otherwise, it should be personal.

Basic Concepts for Personal Auto Coverage

Personal auto insurance is designed to meet the needs of consumers both for individuals and families. This insurance protects your personal assets when you have an accident, by providing the funds to fix your vehicle, to cover medical expenses or to pay for liability expenses in case you are at-fault in the accident.

Getting personal auto insurance is relatively simple but you will need to provide some basic information to request a quote. The information you need to provide includes:

  • The VIN, or Vehicle Identification Number
  • The names, ages and basic information of all main drivers.
  • The make and model of the vehicle.

Although some information is necessary to obtain a quote, you’ll be able to get a more accurate quote if you share more. For example, if you’re a college student with good grades, you might ask about a "good student" discount. If the quote includes discounted prices applied to your account you will need offer proof to the insurer after the vehicle is insured.

Commercial Coverage

Unlike a personal auto insurance plan, commercial coverage is designed for the needs of businesses with multiple drivers and multiple vehicles. It works around the possibility that each company employee can handle the vehicles, so liability protection is usually higher compared to the protection offered by a personal auto insurance plan.

1. Make sure it's multiple drivers and vehicles

2. I don't understand what you want to convey by the second sentence

According to the American Association of Motor Vehicle Administrators, companies don’t register their vehicles in the same way as private car owners do. Therefore, the information required to get a quote is different. A company can have numerous drivers insured under the same policy. The policy is more expensive as a result of the larger number of the main drivers.

Get the Right Coverage

Even when commercial auto insurance is available, it's not the right coverage if you only use your car for personal purposes. Consumers are required to keep the coverage that meets or exceeds the State's requirements. Business owners who protect their assets and employees require greater coverage through a commercial policy.

When you're looking for insurance, focus on your car. Avoid business insurance, unless you’re thinking about starting a business and using your vehicle for that purpose. Personal and commercial auto insurance are two different types of programs. They’re designed for different situations and needs.

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