There is a lot of confusion about what is covered in personal vs commercial auto insurance. So we thought we would help clarify what makes the two different. Similar to homeowner insurance, your personal auto insurance won’t cover any work-related products, equipment or supplies that might be stolen or damaged while in your car. That’s why it’s important to identify the common holes in your coverage before it’s too late.

Personal vs commercial auto insurance

Personal auto insurance coverage

Basic auto insurance protects you against damage you may cause to your vehicle or to a third party. It can safeguard your investment in your vehicle in the event of a claim.

Personal auto insurance, however, won’t cover the loss of or damage to personal belongings such as luggage or hardware, or stolen belongings. In the event of a break-in, standard auto insurance policies will repair body damage, but won’t typically cover the cost of or replacement of stolen belongings. Some auto insurance policies will cover items that are permanently attached to the vehicle like built-in GPS or stereo.

Commercial auto insurance coverage

The main difference between personal auto insurance and commercial auto insurance is in the use of the vehicle. Unlike personal auto insurance, commercial auto insurance is designed for the needs of a business that has one or more vehicles and employs drivers.

In the case you or your drivers are involved in an accident while in a company vehicle, a commercial auto insurance policy will protect your business from lawsuits arising from bodily injury and/or property damage. If you’re a business owner with an inoperable vehicle due to a covered loss, auto insurance can cover the costs of temporarily replacing the vehicle. Whether your business has one or multiple cars, commercial auto insurance is a must to provide your business with the financial protection it needs to rely on its wheels.