commercial insurance vs. personal insurance

When you’re searching for auto insurance, there are plenty of details to pick through. It’s enough to confuse anyone, but can be especially daunting if you’re new to shopping for insurance. In order to get the results you want and need, you first need to understand the basics. Getting a grasp on the benefits and uses of commercial insurance vs. personal insurance is a great place to start.

Personal Insurance

Personal insurance is what buyers purchase on an individual basis, to cover a specific driver or vehicle during personal use. The overall premium price of these policies relies on numerous factors, including:

  • Age
  • Gender
  • Driving record
  • Marriage status
  • Grades (if a student)
  • Crime activity in area of residence

These are most commonly purchased by individuals looking to protect a vehicle that they personally own and do not use solely for business purposes.

Commercial Insurance

Commercial auto insurance is most commonly purchased by businesses looking to protect drivers and company vehicles that are used during everyday operations. The coverage options will typically cover either a specific driver or provide a blanket coverage for a specified vehicle, regardless of who will be driving it. Hiring employees with low accident rates in their driving histories and offering save driving training is the best way to keep costs low for commercial auto coverage.

Understanding the differences of commercial insurance vs. personal auto insurance is crucial to getting the type of coverage you need for your ride. Speaking to your insurance representative can get you all the information you need to make an informed decision.

Personal Auto Coverage Vs. Commercial Coverage: What You Need to Know