Commercial auto policies are in place to provide liability and collision coverage for work related vehicles. Insurance companies view commercial autos as instruments necessary for work, which means they will be used on a daily basis. This means there will be more driving and greater exposure.
Think about it this way, when you are getting personal auto insurance the insurance company will ask what is the purpose of having your vehicle and how far will you be driving. For commercial auto policies it is assumed this will be increased.
Vice President/Agent, Best Rates Insurance Inc, Kalispell Montana
There was a time when it was much less but in many cases the auto were not rated correctly for the business use and also at that time the liability did not extend to other autos driven. Now days it cost more but there is a good reason for that if you are having a commercial auto policy your limits usually are much higher more like $1 million in liability limits or higher. Most personal auto policies do not have that high of limits.
Now you can have a personal auto with Business use on it which will make your personal auto a little more expensive But it really depends on the type of business and the use.
If you have your business name pained on your personal auto then this would not be a good fit for a personal auto policy.
Each carrier has VERY specific guideline just like a pizza delivery driver needs a commercial auto policy most carriers on a personal auto would not cover you if you were doing that type of work and had personal auto coverage only.
Talk to your agent and make sure that you are covered correctly each carrier and state has it's own rules and rates make sure yours is rated as it should be.
.JPG){kind=avatar}
Commercial auto policies are in place to provide liability and collision coverage for work related vehicles. Insurance companies view commercial autos as instruments necessary for work, which means they will be used on a daily basis. This means there will be more driving and greater exposure.
Think about it this way, when you are getting personal auto insurance the insurance company will ask what is the purpose of having your vehicle and how far will you be driving. For commercial auto policies it is assumed this will be increased.
I hope this helps.
Now you can have a personal auto with Business use on it which will make your personal auto a little more expensive But it really depends on the type of business and the use.
If you have your business name pained on your personal auto then this would not be a good fit for a personal auto policy.
Each carrier has VERY specific guideline just like a pizza delivery driver needs a commercial auto policy most carriers on a personal auto would not cover you if you were doing that type of work and had personal auto coverage only.
Talk to your agent and make sure that you are covered correctly each carrier and state has it's own rules and rates make sure yours is rated as it should be.