What is the difference between commercial auto insurance and personal auto insurance?

A good friend of mine called the other day about adding a new truck onto his personal auto policy.  As it turns out, this vehicle was better suited for a commercial auto policy in San Antonio.  You may ask, what is the difference between a commercial auto policy and a personal auto policy?  This is a question I get asked many times.  In short, commercial auto insurance is insurance for a business vehicle, while a personal auto policy is car insurance for your own personal vehicle.  Sometimes, you can have a work vehicle listed on a personal auto policy so long as your policy shows that you are using your vehicle for business purposes.  In other words, you have to be forthcoming with an insurance company so as to avoid any potential trouble with a  claim.  In certain circumstances, it is better to buy a commercial auto policy.  Here are some examples of when a commercial auto policy maybe be a better fit.

  • You have employees and your employees have access to your vehicle
  • You use your vehicle for food delivery
  • The vehicle is a 1 ton vehicle and is used for business
  • The vehicle is used for towing
  • The vehicle is used as a taxi
  • The vehicle is wrapped in your business logos
  • and others

While you may still be able to place your business vehicle on a personal auto policy it is important to remember to work with a  reputable agent.  A reputable agent will you sound advise.

Fred Gonzalez is the principal agent at Personal & Commercial Insurance Agency of San Antonio. He has been licensed to sell and service insurance in Texas since 2001.
Personal & Commercial Insurance Agency of San Antonio 9222 Culebra Rd Suite 107, San Antonio, TX 78251 (210) 888-1750