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Commercial Auto vs. Personal Auto

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If you own a contracting business in the state of Texas, you likely rely on your vehicle to move equipment from one job site to the next. It’s smart to have an insurance policy in place to protect your investment from careless drivers or dangerous road conditions, but are you sure you have the right kind of coverage? Don’t assume your current car insurance policy will protect you from the unexpected. At Contractors Mark, we specialize in commercial auto insurance to assist and help protect contractors in Texas. Read on to see if you need to purchase a commercial auto insurance policy for your business needs.

Understanding the Difference Between Commercial and Personal Auto Insurance

Commercial auto insurance protects vehicles you use for business purposes and helps you avoid the potentially high costs associated with property damage, liability, and injury claims.

There are several key differentiators separating commercial and personal auto insurance. The amount and the purpose of the coverage are the factors that set these two kinds of insurance apart. A business will have many more liability risks than an individual, and therefore you can expect a correspondingly higher liability cost.

Who Needs a Commercial Auto Insurance Policy?

How do you know if you need commercial auto insurance? Consider the following questions for your Texas business.

1. How do you use the vehicle? If you own a business where you need transportation, you’ll most likely require a commercial auto policy to protect that business. Here are some business-related functions you may use your vehicle for:

  • Carrying equipment or tools
  • Traveling to and from job sites
  • Transporting hazardous material
  • Using your vehicle to tow other vehicles that play a role in your business, such as a trailer

2. Who owns the vehicle? If you are the sole proprietor of your business and only use your vehicle for commuting, a personal auto insurance policy might be enough to cover your needs. Contact us at Contractors Mark to make sure.

3. What kind of vehicle is it? The size and weight of your vehicle come into play as well when you are trying to decide whether you need commercial auto insurance. Since a larger vehicle like a dump truck can cause much more damage in an accident, you likely need commercial car insurance to cover you.

Working with Contractors Since 2000

Still not sure about the difference between commercial and personal auto insurance? Contact us at Contractors Mark today. We can help you find the best coverage for your business needs and help you tailor a policy just for you.

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