Which Policy Do You Need? - Personal Or Commercial Auto Insurance
Are you torn between getting a personal and commercial policy for your car? A personal policy is bought to insure personal vehicles, while a commercial policy is purchased by business owners to insure vehicles they use in business. But which policy do you settle for if you use your personal car for business? Here are two questions to help you make the right decision on which policy meets your needs best.
What Type of Vehicle Is It and What Is Its Intended Use?
As you debate on the best policy for your vehicle, begin by considering the type of vehicle and its intended use. If the car is for your business, you should consider getting a commercial policy.
For example, if you just bought a delivery van to access your customers easily or cover a wide area, commercial insurance will be the right call. Besides, some commercial vehicles may require commercial insurance. On the other hand, if you are buying insurance for a car you intend to be using to commute to and from work, consider getting personal auto insurance.
The intended use of the vehicle is also essential. If you run a business and own a personal pickup truck, it could help both in business and running personal errands. So, you will need to consider how you will be using the truck to choose the best insurance policy.
Who Will Be Driving and Would You Like to Insure Your Family Members Too?
Who mainly operates the vehicle? Will you be solely driving it, or do you have a family or team of employees who will also be occasionally driving the car? When you ask employees to use the vehicle to meet their assigned job duties, the law will consider the vehicle commercial. Therefore, you should consider a commercial auto policy.
The two policies differ in the extension of coverage. Commercial policies are more restrictive in covering family members as it only provides cover if they are either occupying or driving the car.
In contrast, personal auto insurance offers broader coverage, especially to family members under different circumstances. So, depending on whether you would like to insure your family, you can decide on the best cover.
Determining the right kind of policy can be confusing. However, the questions above will help you decide the best policy for you. Which policy will serve you best? Call an insurance company like Your Local Insurance Services to buy your insurance policy.
