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Commercial vs Personal Auto Insurance: What’s the Difference?

commercial vs personal auto insurance whats the difference f

Automobile insurance is essential when it comes to safeguarding your vehicle from potential threats. It helps to be aware of how commercial automobile insurance is different from personal auto insurance so you can make an informed choice. Read on to understand the similarities and differences to know which type of policy best meets your needs.

Difference Between Commercial & Personal Car Insurance Policies

The purpose of a commercial and personal car insurance quote is to protect your vehicle against potential risks. It provides financial protection and the means to help you in case of an unfortunate event.

However, they differ when it comes to the following aspects:

  • Varieties of policies available
  • Types of risks covered
  • Coverage limits

A personal car insurance policy is designed to cover your individual needs while commercial car insurance coverage is customized to accommodate all types of business activities based on your industry. Your personal auto insurance will not include any business activity, and a commercial insurance policy may not cover all of your personal needs.

Choosing an Automobile Insurance Quote

When it comes to selecting an auto insurance policy, there are several complex situations where you may not know what type of insurance would apply. Listed below are a few common instances:

  • You are self-employed or manage a home-based business
  • Your employees frequently use your personal vehicle
  • You tend to use your own vehicle for business purposes
  • When you use the car intended for commercial activities for your personal work as well
  • You work for a ridesharing organization

You need to understand the difference between personal and commercial automobile insurance so you can deal with such tricky situations.

When Should You Select Commercial Car Insurance Coverage?

If you are using your car only to drive back and forth to your place of work and drive around your neighbourhood, you should get a personal policy. However, if you intend to use your vehicle for business purposes such as hauling equipment, driving to meet clients, doing deliveries, and other business-related activities, you may need commercial auto coverage.

Factors that Impact the Cost of Your Car Insurance Policy

Although the overall costs vary depending on several aspects, commercial vehicle insurance is typically more expensive as compared to personal auto insurance. The following factors influence the cost of automobile insurance quotes:

  • The overall value of the car
  • The purpose of using the vehicle
  • Modifications, additions, and unique features of the vehicle
  • The distance covered by the vehicle
  • Coverage limits
  • Any other factors specific to your driving needs or business requirements

We Can Help You Get an Accurate Automobile Insurance Quote

Commercial vs Personal Auto Insurance: What’s the Difference?

Orr & Associates is one of the best insurance companies in Ontario. We have the expertise and experience to help you choose the right policy that meets your needs. Our brokers will work to understand your requirements and come up with accurate vehicle insurance quotes accordingly.

If you are looking to purchase a personal or commercial automobile insurance policy, give us a call at 905-833-6691 or toll-free 1-866-521-5926. You could also fill out our online form to get a quick auto insurance quote.