Both arranging personal and business vehicle insurance should start with looking at your or your company’s requirements. You need to identify the type of coverage and levels of protection. Most people can arrange private and small business auto insurance with little assistance. You should keep in mind that help will be available from independent brokers or agents whenever you need.
Personal Car Insurance
Most automobiles are bought for private use. They are driven from home to work, take children to school and other social activities including going on holidays and family visits. They are driven by one driver or family members. They don’t cover long distances and travel mainly around the neighborhood. They may have friends and colleagues in them but they don’t carry goods and passengers for financial gain.
Every vehicle should have minimum auto insurance liabilities coverage and every driver who is likely to go behind the steering wheel should be insured within the policy. Then, you may want to insure for damages that can come to your car. Collision, comprehensive and uninsured motorist coverage are usually bought by most motorists.
Business use of an automobile may not be covered by a private policy. You need to check your documents to see what activities are covered. Each state may have different regulations and each company offer varying level of protection. Usually, automobiles that are owned by businesses should have a commercial policy.
Business vehicles are utilised to increase sales, deliver goods and carry employees. Company may charge a fee for the use of a vehicle or as a result of it. Also, they are owned by the company and driven by employees. Therefore, commercial policies are requires to include these usage and drivers as well as goods and passengers carried.
Differences between Personal and Business Policies
1. Fundamentally, both types of policies are bought to cover the risks associated with the usage of the vehicles and will have similar elements. The main difference is that private cars are looked after by the owner who is likely to be more careful and attentive. Commercial vehicles can normally be driven by any employees of the business.
2. Their purpose is another point that differentiates them. With a personal policy you want to protect yourself and any other drivers you allow. Business coverage is to protect the company and its assets and employees.
3. Most people drive automobiles with few minor changes. Commercial vehicles may be modified to carry various tasks. So, you will need to explain their purpose and changes made on them.
4. Motorists may insure one or two cars with the same policy. But businesses normally insure a few of them and a fleet. Their fleet may include cars, vans and trucks. You can insure all of them under a commercial coverage but you will need to pay attention to details.
5. Most private policies may be readily packaged and can be bought with hardly any changes. There are so many types of companies with different needs and they would require more customized policies.
6. When damages and injuries are caused by a company vehicle the firm will need to face the liabilities claims even though it was driven by one of their employees. So, the liabilities requirements can be different and may need to cover the liabilities claims against the employees and from the employees.
7. Most private policies will not allow you to carry goods and passengers for financial gain. On the other hand, commercial vehicles are bought and insured purely for this purpose.
If you are running a small business and using your private car for some of the tasks you may be able to have a business extension on your private policy. You should discuss this with your auto insurer.
Other than the points considered above there are a few similarities naturally. The coverage requirements are quite the same apart from adopting for business use. Both would want to insure for liabilities, collision, comprehensive and uninsured motorists. The perils like fire, theft, vandalism, flood and other natural damages would be almost the same as well.
You may need to seek out a specialist commercial vehicle insurance broker but most companies offer both types of policies.