The Difference Between Personal and Commercial Auto Insurance

What Car Insurance is Right for You?


When you run a small business, it can be hard to keep up with all the insurance coverages you need and can benefit from. The line between a personal vehicle and a commercial vehicle, in particular, can be unclear. As a result, you’re unsure whether you need personal auto insurance in Renton, WA or commercial auto insurance. To find out, let’s take a closer look at the two different policies.


Commercial Auto Insurance

A commercial auto insurance policy is designed to cover accidents that occur while you or your employees are using a vehicle for business purposes. This can include transporting goods, materials, employees or clients. A commercial policy typically insures all of the business’s employees as additional insured parties.


If you regularly use a vehicle to perform the following tasks, then you can benefit from a commercial auto insurance policy:

  • Transport goods or equipment
  • Drive clients or employees
  • Perform a service that you’re paid for
  • Tow a trailer used for business
  • Change passengers a fee to ride in your vehicle


Keep in mind that even if you do these tasks every so often, you will still need a commercial auto insurance policy. Your personal car insurance will not cover your work-related journeys.


Personal Auto Insurance

A personal car insurance policy only covers accidents that occur while you’re using your vehicle for personal reasons, including commuting to and from work and travel unrelated to your job duties. Policies often insure the owner of the vehicle and one or two immediate family members.


Auto insurance can be there for you when you need it the most. Work with an agency that can help you discover whether you need a personal or commercial auto insurance policy. Talk to the team at Humble & Davenport Insurance to get started today.

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