Are you certain that your auto insurance covers your needs?
It might seem like a question with an easy answer. Most people assume that if they’re in a car accident, they’ll be covered by their auto policy. However, this might not always be the case.
Say you have a job that involves a lot of driving. Maybe you need to drive to clients, or you’re regularly transporting materials from one place to another. Your personal auto insurance may not give you the coverage you need.
That’s where commercial auto insurance comes in. Commercial auto insurance is a must-have for business owners, self-employed workers, and more.
So, what’s the difference between personal and commercial auto insurance? Read on to find out!
Personal Auto Insurance Basics
Most people are familiar with personal auto insurance, as it’s required by law. But how well do you understand your personal auto policy? Are you getting the coverage you need?
The most basic form of car insurance is liability coverage. Liability coverage protects you when you are found ‘at fault’ for an accident. It covers medical bills and vehicle damage for the other person involved.
Liability coverage is only one part of an auto policy. A policy also includes coverage for damage to your own vehicle, coverage for medical payments, and coverage for uninsured or underinsured motorists.
There are two types of coverage for damage to your vehicle: collision and comprehensive.
Collision coverage is exactly what it sounds like: it covers damage sustained in a collision. Whether your car runs into another vehicle or an object like a pole or a building, collision coverage is what you need.
Comprehensive coverage is for all the other things that could damage your vehicle. Falling objects, accidents involving animals, theft, and more fall under the umbrella of comprehensive coverage.
Amistad Insurance Services also allows you to add various kinds of miscellaneous coverage to your policy. This includes things like towing and labor cost coverage or coverage for rented vehicles.
It can be difficult to figure out exactly what kind of auto coverage you need. It’s all too easy to be over- or under-insured; that’s why Amistad is dedicated to helping you find the policy that’s right for you.
While you’re likely familiar with personal auto insurance, commercial auto insurance might be more of a mystery. In fact, many people are unsure of whether or not they need a commercial auto insurance policy.
Do You Need Commercial Auto Insurance?
It may not have occurred to you to get a commercial auto policy, but that doesn’t mean you don’t need one. There are many reasons someone might opt for commercial auto insurance.
Many small business owners use their vehicles for work and thus need commercial coverage.
Many larger businesses also need a commercial auto insurance policy. This is especially true if they have company vehicles for employee use.
If you are self-employed, there’s a good chance you need a commercial auto insurance policy. Any travel you do for work may not be covered under your personal auto policy.
Still unsure if you need a commercial policy or not? If you’re on the road a lot for work, you may want to check with your employer about their commercial policy, just to be sure.
You can also check out some examples of commercial vehicle use and see which ones apply to you.
Commercial Auto Insurance Basics
Now that you know if you need a commercial auto policy, you’re faced with a bigger question: what exactly does commercial auto coverage entail? How does it differ from personal coverage?
Commercial coverage is structured a lot like personal coverage. It encompasses liability coverage for both bodily injury and property damage, just like your regular auto policy.
Commercial auto insurance also features collision and comprehensive damage coverage for your vehicle. These function the same way they do under a personal policy.
Other familiar features of personal auto insurance, such as uninsured motorist coverage and coverage of medical payments, are also available on commercial policies.
Overall, the way commercial auto insurance functions is very similar to personal auto insurance. However, commercial insurance is able to cover a variety of situations and vehicles that personal coverage does not.
Is Commercial Insurance Worth It?
Even if your vehicle is eligible for commercial auto insurance, you might be wondering, “Do I really need it?” The answer is yes.
Underinsurance is a problem facing many small businesses today. Commercial auto insurance is an area that many businesses neglect.
If you’re self-employed and rely on your vehicle for work, going without commercial insurance could end badly. If you’re involved in an accident that your personal auto policy doesn’t cover, you might be out of a job.
On the other hand, suppose you run a small business with one or two vehicles reserved for business use. If something were to happen to an uninsured vehicle, it could be a major financial burden to your business.
Even large businesses can be sidelined by unexpected vehicle damages. Company cars could be in a serious accident, or many vehicles could be damaged at once.
Why, then, would you take that risk? Commercial auto insurance shouldn’t be thought of as an expense, but an investment. It’s a way to protect your business, your employees, and your finances from potential harm.
Of course, much like a personal auto policy, every commercial auto policy is different. Different businesses will have different needs. Thankfully, Amistad Insurance Services can help you determine the perfect policy for you.
All the Coverage You Need
Personal auto insurance and commercial auto insurance are two very different things. However, they have one thing in common: Amistad Insurance Services can assist you with both.
Whether you need a new personal auto policy or you’re looking to set your business up with commercial auto insurance, our brokers are here to help. We are here to provide you with the best policies in North Carolina.
If you have more questions about what policy is right for you, please reach out to us!
