For small businesses, the line between a commercial and personal vehicle is often blurred. There are instances, for example, when small business employees and owners end up using their personal vehicles to travel to job sites, deliver goods, and transport equipment.
While this might not be an issue on most days, it will become a problem if these vehicles get into an accident while on the job.
Personal auto insurance policies do not account for business use. This means you’re mostly not covered if you get into an accident while driving around for work (except for when you’re commuting to work and back).
Commercial vehicle insurance and personal auto insurance serve different purposes. Read on to find out what they are:
The main difference between commercial vehicle insurance and personal auto insurance is the ownership of the vehicle. If a vehicle is under the business’s name, the damage will be covered by commercial vehicle insurance.
Commercial Vehicle Insurance Springfield MA covers all accidents that take place while driving a company vehicle. While both insurance policies pay for medical and legal bills in the event of car accidents, commercial vehicle insurance can efficiently deal with higher claims for different vehicle types and more complicated legal issues.
The following is a list of jobs that commercial vehicle insurance can cover:
• Transporting good and equipment
• Picking or dropping clients and employees
• Performing a service that the company is paid for
• Charging passengers a fee to take a ride in your vehicle
• Charging people to transport their goods
• Towing a business trailer
• Hauling work-related loads
Image Alt Text:
Personal auto insurance covers and pays for your medical, legal, and physical damage bills for your car, which you use for personal reasons. This will include commuting to and from work, travel plans unrelated to the job, and any other reasons.
Personal auto insurance policies can also cover the vehicle’s owner and any other family members who ride as passengers. You need to remember that if you use your vehicle for a job-related task and get into an accident in the process, your insurance company is likely to reject your claim.
This policy has less coverage than commercial vehicle insurance, but it is enough for an independent car owner.
If you are unsure about which auto insurance policy suits your needs, contact an insurance consultant in Springfield.
If you’re looking for one, get in touch with our experts at Western Mass Auto Insurance. We provide more than just auto insurance for personal and business use. We also offer homeowners insurance, apartment insurance, and renters insurance Springfield. You can visit our service page to learn more!