Commercial Auto Insurance Vs. Personal Auto Insurance

Commercial auto insurance and personal auto insurance both provide financial protection after a covered auto accident. The type of policy you choose depends on whether you insure a vehicle for business or personal use.

Contact Academy Insurance Agency in Leesburg, Virginia, to get appropriate auto insurance at a great rate.

What Is Commercial Auto Insurance?

Commercial auto insurance helps businesses pay for their legal liability for third-party injuries and property damage after an at-fault accident. Depending on the coverage you choose, it can also help pay to repair or replace a company vehicle after an accident.

What Is Personal Auto Insurance?

Personal auto insurance helps individuals cover their legal liability for third-party damages if they cause an accident. Depending on the types of coverage included with the policy, it may also help pay for damage to the insured vehicle.

Personal auto insurance doesn’t typically cover accidents and incidents that happen while the vehicle is being used for business purposes. If you use your vehicle to deliver products for a company or as a rideshare vehicle, talk with your agent or employer about what insurance you should have to ensure you have coverage.

What Auto Insurance Is Required in Virginia?

Viriginia-based companies and people who have vehicles registered in Virginia must purchase at least the minimum amount of required auto insurance coverage, including:

• Bodily injury liability helps pay for accident-related third-party injuries after an at-fault accident.
• Property damage liability helps pay for accident-related third-party property damage after an at-fault accident.

If you or your company finances or leases vehicles, your lienholder requires full coverage insurance, which may include:

• Comprehensive coverage helps pay to repair or replace the covered vehicle if it’s damaged in a non-collision-related incident such as a fire, vandalism, theft or severe weather.

• Collision coverage helps pay to repair or replace a covered vehicle if it’s damaged in a collision with another vehicle or object.

• Gap insurance helps cover the financial gap between the total amount owed on a loan or lease and the insurer’s payout if a covered vehicle is a total loss after an accident.

Personal auto insurance and commercial auto insurance policies have optional endorsements and coverage that your agent may recommend to customize your coverage further.

How Much Does An Auto Insurance Policy Cost?

Whether you need commercial or personal auto insurance, the insurer bases premiums on information about the insured party, the value of the insured property and the policy itself.

Insurers may consider the following:

• Your claims history

• Your location

• The amount of coverage you want

• The policy’s deductibles

• The driving record of the insured individual (if appropriate)

Your agent can help you get multiple quotes for auto insurance from reputable insurance companies.

Contact Us

Contact Academy Insurance Agency today to get help determining which type of insurance is most appropriate for your situation.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.