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Personal or Commercial Car Insurance

Personal and commercial car insurance are the two options that people have to choose from to insure their personally owned vehicles. Businesses with vehicles titled to the company tend to insure them with commercial policies without even questioning whether a personal policy might suffice in its stead. But the question becomes more complicated when the vehicles being insured are personally owned and titled. At least, this is the case in the minds of the vehicle owners. The question of whether personal or commercial auto insurance is more appropriate has to do with certain factors that actually prove to be quite simple once they are recognized. But for many of us, getting to that point of recognition is the hard part.

Personal Vehicles Used for Business

Many people all across the country own vehicles that are titled in their names and that they pay for out of their own pockets, but that get used for commercial or business purposes. These are the vehicles that represent the biggest question marks in this ongoing auto insurance debate. This question, of course, is not a new one at all, but one that generations of workers and business owners have asked themselves and their agents to try to find the right answer.

One of the issues clouding the question is the fact that there is this feeling that commercial auto policies are not affordable for people. Many folks simply opt for personal policies because they believe that a business policy would bury them financially, and they think that by asking their insurer for a quote on a business policy, they would tip their hand and surely run into trouble with their existing coverage.

But the truth of the matter is that commercial coverage is not necessarily all that much more expensive. The price difference really depends on the situation. Many of the people who are trying to get away with personal policies in spite of their suspicions that these plans may be insufficient are the same ones who drive small or medium sized vehicles, up to medium duty pickup trucks. The funny thing about all of this intrigue and finger crossing is that in many cases, upgrading to a business policy on a pickup truck or a van would not represent much of a price difference at all.

Commercial Policies a Good Value

Commercial auto insurance policies are a good value because they offer great coverage for a reasonable price. In the case of many medium duty pickups, for example, the price difference might be negligible in comparison to a personal policy, but the coverage is fantastically improved. This is particularly true of the liability coverage in commercial plans. One of the great dangers of a personal policy for those of us who use our vehicles for work is that we could be sued for liability after accidents without sufficient protection to pay the damages. Civil suits related to these commercial accidents tend to involve much more money than those stemming from accidents in vehicles not being used for work. Claimants are not limited by the limits of the policy of the defendant.

Insurance Need Depends on Use

Some online consumers are unaware of the ways insurers determine what constitutes commercial use and the need for corresponding coverage. The simple and abbreviated answer is this: any vehicle that is being used for work needs to be covered with a commercial policy. Different companies do have different standards for what constitutes commercial or business use of a vehicle, so there is some variance in this area. But as a general rule (and again, this is an abbreviated answer), business use of a vehicle requires business coverage.

This includes use for another company as well. If you are an employee of a company but you use your truck to do your work, for example, your truck should at least be covered under your employer's non owned vehicle coverage. If you are a sole proprietor who uses contract labor, the same situation may be true of your need for non owned or hired coverage as a part of your policy.

If you do work or transport goods that require more liability coverage than what standard personal policies include, commercial coverage makes more sense even if you can "get away with" personal coverage. Some people who do deliveries for their employer such as pizza drivers and employees of flower shops also need to check out the specifics of their employers' auto insurance coverage as well as that of their own.

The issue of whether a vehicle needs personal or commercial auto coverage can really be solved in a quite simple and satisfactory manner without much effort. Thinking in terms of how the vehicle in used and what kind of liability protection it needs can provide the answer.

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