What Differentiates Personal and Auto Insurance Policies?

What Differentiates Personal and Auto Insurance Policies?

What makes commercial auto insurance different from personal policies?

If your business owns company vehicles, then you need to protect these assets with comprehensive commercial auto insurance.  But what makes this form of auto insurance different than the personal car insurance you and your employees carry?  Here’s what you need to know about the coverage offered by commercial auto policies.

Personal and commercial auto insurance is actually 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, 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.

Another major difference between commercial and personal auto policies is the cost.  Because commercial auto policies offer more liability coverage, they are more expensive than personal auto policies.  Commercial auto insurance is also more expensive because they typically cover more drivers and vehicles than personal policies.

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.

This is what you need to know commercial auto insurance.  Do you have further questions about your business insurance?  If so, then contact the experts at Steve Wilk Insurance.  Check out our new office today at 310 S Main Street, Suite C, Lombard, IL 60148.