Do I Need Commercial or Personal Insurance?
Many customers call us to ask, "What is commercial insurance?" They aren't sure whether they actually need commercial vehicle insurance, or business insurance, for their companies. Figuring out what kind of insurance — and how much — you need can be confusing. That's why Progressive provides the simple guide below to help you decide whether personal auto insurance or commercial auto insurance is right for you.
How to Determine if You Need Commercial Vehicle Insurance
Personal auto insurance policies can provide enough auto insurance coverage for some businesses, especially if you're also driving your vehicle for personal use. However, if you require specific business auto insurance coverages, high Liability insurance limits, operate an unusual vehicle or haul special equipment, transport goods or people, or have other special needs, then you'll need insurance for commercial cars, trucks and so forth.
The chart below illustrates the key differences between the protection offered by a personal auto insurance policy and a commercial vehicle insurance policy. For example, a personal auto insurance policy will provide coverage if you own the vehicle but not if your employer owns the vehicle.
| |
Personal |
Commercial |
| Who Owns the Vehicle(s)? |
| Individual Owns Vehicle |
 |
|
| Sole Proprietor Owns Vehicle |
|
|
| Corporation Owns Vehicle |
- |
|
| Rented Business Vehicle |
- |
|
| Employee Owns Vehicle Used for Business |
- |
|
| Vehicles |
| Single Vehicle |
|
|
| Multiple Vehicles |
up to 4 |
up to 20 |
| Vehicles with Special Equipment |
- |
|
| Maximum Gross Vehicle Weight (GVW) |
12,000 lbs. |
Unlimited |
| Maximum Load Capacity |
2,000 lbs. |
Unlimited |
| Drivers |
| Named Insured Only |
|
|
| Employees or Coworkers |
- |
|
| Resident Relative |
|
|
| Vehicle Use |
| Business Travel |
|
|
| Farming |
- |
|
| Pickup or Delivery of Goods |
- |
|
| Pickup or Delivery of People |
- |
|
| Other |
| Maximum Liability – Combined Single Limit (CSL) |
$500,000 |
$1,000,000 |
| Maximum Number of Job Sites Per Day |
2 |
Unlimited |
| Maximum Weight of Supplies & Equipment |
500 lbs. |
Unlimited |
| Coverage for a third Party as an Additional Insured |
- |
|
| Waiver of Subrogation Against a Third Party |
- |
|
| Liability Coverage for Hired or Non-Owned Autos |
- |
|
| Liability Coverage for Mobile Equipment |
- |
|
A Note About Personal Auto Insurance Policies
If you decide to purchase a personal auto insurance policy, it's important that you tell your insurance company that you'll be driving the vehicle for business so that they can make a note on your policy. Without that note, if you're in an accident while using your vehicle for business, your accident may not be covered by your personal auto policy.
For more information about insurance for commercial vehicles, contact us today. Or, for information about personal insurance, you can visit us at progressive.com today to get an online quote or find an agent. Get your free, no-hassle auto insurance quote now!