The Difference Between Personal and Commercial Auto Insurance

What You Should Know About Commercial and Personal Car Coverage


Do you drive for work? Is your business constantly on the move? For small businesses, the line between what is considered a personal vehicle and a commercial vehicle is often blurry. When a small business uses a vehicle to transport employees, move equipment, or deliver goods, it’s common to assume that a personal auto insurance policy will cover such activity. However, this is simply not the case. Here is what you should know about personal and commercial car insurance in Millerton, NY.


The main difference between personal and commercial car insurance is the type of liabilities the policy covers. While both policies pay for vehicle repairs and medical bills after an accident, a commercial policy typically covers higher claims, different types of vehicles, and more complex legal issues than a personal policy.



This covers accidents that occur while you or your employees are using a vehicle for business purposes, including transporting goods, materials, employees or clients. A commercial policy typically insures all the business’s employees as additional insured parties, which means that every employee with a valid license can use the vehicle. If you regularly transport goods, drive employees/clients, charge passengers for a ride, haul work-related loads, or tow a trailer used for business, it’s important that you secure a commercial auto insurance policy.



A personal policy only covers accidents that occur while you’re using the vehicle for personal reasons, including commuting to and from work and driving for pleasure. If you use your vehicle for business reasons, other than commuting, you may need to obtain a commercial auto insurance policy. Business use of a personal vehicle insurance is typically less expensive than a commercial auto policy. These are designed for people who use their vehicles to work for a ridesharing service or do seasonal or part-time work.


At Kneller Agency, we work with you to find reliable and suitable insurance to protect against the unexpected. Visit us today in New York to get started on your tailored coverage.

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