Trying to figure out what kind of insurance you need, as well as, how much you need can be a confusing task!] but there are a few questions you can ask yourself to find out if you should get a Commercial or Personal insurance policy. The most important, discerning questions are:
- Who Owns and Drives the Vehicle: If the vehicle you drive is owned by a business then you’ll probably need to obtain a Commercial Auto Policy—but if you’re a sole-proprietor and personally own your vehicle, then a Personal Auto Insurance Policy will do it!
- How the Vehicle is Used: If the vehicle in question is being used for business purposes and owned under an LLC or other business license, you will need a Commercial Auto Insurance policy. Someone who is a sole-proprietor and uses your vehicle for client visits can avoid a Commercial Auto Insurance policy—but as you can see, it’s all in the details.
- Type/Weight of Vehicle: If the vehicle you are driving is bigger than a full-sized pickup truck then you most likely will need to have a commercial policy and license. Vehicles such as tow trucks, commercial trailers and other heavy duty vehicles can cause much more damage than a normal vehicle and need special coverages due to this. These vehicles usually wouldn’t be used for day-to-day commuting so it disqualifies them from under a personal plan!
In some cases, you could be provided enough coverage through a Personal Auto Insurance—but remember that it is always best to speak to your agent to find out for sure! You do not want to get into an accident and find yourself without the correct kind of coverage!