What Is the Difference Between Personal and Commercial Auto Insurance

Businesses tend to have their own vehicles which are used to complete tasks for the company. However, when it comes to small businesses, the lines may be blurred. Entrepreneurs and employees sometimes use their personal vehicles to travel to job sites, deliver goods, or even transport equipment.
Since personal auto insurance excludes business use, it is essential to understand the difference between the two types of vehicles and which auto insurance applies to them.
Commercial auto insurance
The primary difference between commercial auto insurance and personal vehicle insurance is whether or not the business owns it. When the business owns a car, i.e., it has been bought under the business which is a separate entity, it must be covered by commercial insurance.
Commercial auto insurance covers any accidents that occur when an employee is using the vehicle. Even though commercial and personal auto insurance covers legal and medical bills, commercial auto insurance covers higher claims, more complex issues, and various classes of vehicles too.
A commercial auto insurance policy also acts as an additional insured, allowing employees to use this vehicle if they have a valid driver’s license.
Commercial auto insurance applies to vehicles that are used to:
• Drive clients or employees
• Perform a service you are being paid for
• Deliver goods or transport equipment
• Charge passengers a fee to ride in the vehicle
• Charge a fee for transporting goods
• Haul heavy loads for company work
Hired and non-owned auto insurance

If you’re an entrepreneur or your employee uses a personal vehicle when running work-related errands, consider purchasing a hired or non-owned auto insurance. This protects your vehicle against damage caused when you are on the job. It also provides protection when your business rents vehicles for business use.
It is important to note that this kind of insurance covers legal bills incurred from an accident, not vehicle damage.
Personal auto insurance
Personal auto insurance is for vehicles used for your personal needs. The vehicle can be used to commute to work and back. This insurance typically insures the owner of the vehicle and one or two immediate family members who use the car.
Personal auto insurance won’t cover the damage caused while on a business trip. Such insurance claims will get rejected as they provide comparatively less coverage.
If you’re based in Indian Orchard, MA, Western Mass Auto Insurance can draft a low-cost auto insurance policy. Our auto insurance agents in Indian Orchard will address any questions you may have. Take a look at our auto insurance coverage services here.