Personal Or Commercial Car Insurance: Which Is Right For You?

If, like many Americans, your family car is alsopersonal auto policy provides? Generally, a
used for purposes that could be consideredcommercial auto policy offers higher limits of
commercial use, you may want to steer yourselfliability, but less or no coverage in areas that are
into a chair and look over your insurance policy.typically not associated with commercial auto
You'll need to consider buying a commercial policyrisks.
or making sure that your existing personal auto- Do you need special coverage for situations
policy covers the vehicle for business use.encountered while conducting business?
Whether or not you need a commercial policyCommercial auto policies usually offer these
depends on how you use your vehicle and whatcoverages, and they're normally not available with
company you have it insured with. Everypersonal auto policies. These include hired and
company has different guidelines and maynonowned auto coverage and coverage for
surcharge for business-use coverage on atowing a trailer for business use.
personal auto policy.- Do you need to list any employees as drivers?
If you're not sure whether business use isCommercial auto policies allow you to list anyone
covered on your personal policy, it's important tothat you employ. You don't have that option with
call your insurance company or agent. Texasa personal auto policy. In general, you'll need
Prime Insurance and Progressive Insurance hascommercial auto coverage if the vehicle you use
put together these four questions you may wantis owned by a corporate partnership or driven by
to ask:employees, or if it's used to haul tools or
- How do companies determine commercial use?equipment weighing more than 500 pounds, make
One definition could include "engaging indeliveries or heavy enough to require state or
transporting goods for compensation or a fee,"federal filings.
which includes pizza or newspaper delivery, 
catering, door-to-door consulting services,For more information about commercial auto
landscaping or snowplowing services, logginginsurance, visit
business, day care/church van services orDid You Know?
farm-to-market delivery. People who do theseIf, like many Americans, your family car is also
kinds of work should consider purchasing aused for purposes that could be considered
commercial vehicle policy.commercial use, you may want to steer yourself
- Do you need more liability coverage than ainto a chair and look over your insurance policy.