Personal and commercial auto insurance are different policies, but, ideally, on paper, they come off as almost the same. And, most individuals and small and medium-sized business encounter situations that make it even more unclear about which of the two policies to buy. Yet, not so many insurance firms or brokers address the fine line between these two policies. If you are facing this dilemma, too, the best way to know the policy to take up is by mastering how the two insurance policies compare. On that, reputable professionals in personal and commercial auto insurance in Wisconsin advise that you consider the following first:
Identify your situation
To best address the dilemma in whether to choose personal or commercial auto insurance, you must determine current and potential predisposing conditions. Ideally, in most cases, you will get to rethink your auto insurance options if you either are a self-employed individual or running your business from home. For some, the dilemma is in which policy to buy if you use a personal vehicle to run business operations. Also, which auto insurance is best to use if you often use a commercial vehicle to do personal errands. Again, which policy is best for personal vehicles that you allow your employees to use both for personal and business errands? And, if you use your car for ridesharing, must you get commercial auto insurance or a personal auto insurance policy will still do?
Identifying the particular situation that necessitates your need for auto insurance will help your insurance agent find you the best policy.
So, what difference is there between these two policies?
Ideally, to some extent, both personal and commercial car insurance do offer the same coverage against any road- and vehicle-related threats. They both provide you the financial resources and protection to facilitate recovering your vehicle. These policies, however, vary in the risks they cover, the limits of the insurance coverage, and the policies that are available from your insurance agent. If, when evaluating your options, you tend towards your vehicle being more of for personal than business use, a personal car insurance policy is what you must obtain. And, the converse also applies.
As one renowned auto insurance agency in Wisconsin explains, the limits of personal insurance policies only reach covering individual needs. Therefore, that will only come as a property or casualty insurance product. For commercial car insurance policies, however, you can tailor them to suit your industry, level of risk, and type of business activities in which you use the vehicle.
Conclusion: Matters cost
Commercial auto insurance policies have higher premiums than do personal policies. However, pricing auto insurance depends on a myriad of factors. Top among these factors include how you use and often use the vehicle, and your vehicle’s value (including of the modifications you have made). Also, consider the particular limits you want the policy to cover. These factors can even make your personal auto insurance costlier than a commercial auto insurance policy. The best way to address this cost issue is by getting a quote from your insurance agent to compare your cost and coverage options.