When you're shopping for automobile insurance, you may find the different types of policies confusing, especially if you're trying to insure the vehicles your company uses in the course of doing business. In fact, you may not know the difference between commercial car insurance and personal car insurance, but understanding how these two policies differ is critical for ensuring your commercial vehicles are protected.

Personal Auto Insurance

A personal insurance plan is designed to protect the driver, the vehicle, and any passengers involved in a car accident from expensive medical and repair bills. The liability portion of an auto insurance policy covers the driver from economic damages incurred by another party if the driver is determined to be the person responsible for a car accident. This type of policy is only intended for private vehicles, which are those not owned by a business.

Commercial Auto Insurance

Commercial auto insurance is a type of business insurance that covers company-owned vehicles used for business purposes. This includes cars, fleet vehicles, and other kinds of vehicles that you may use to help run your business. If your company owns large trucks or specialty vehicles, you'll need to have special insurance policies to ensure you're completely covered. For example, if you own box trucks, food trucks, or service utility trucks, you'll need a specific commercial policy for these.

What's Covered in a Commercial Auto Insurance Policy?

Bodily Injury Liability

This coverage is the same as it is in a personal car insurance policy. It covers expenses for bodily injury or death that result from an auto accident that's determined to be your fault (or your employed driver's fault).

Property Damage Liability

As with personal property damage liability, this commercial insurance component covers expenses for damage to another person's property that results from an auto accident that's determined to be your fault (or your employed driver's fault).

Combined Single Limit

Many policies have separate limits for bodily injury and property damage, but a combined single limit policy has one limit for both bodily injury and property damage per incident, regardless of the number of people injured.

Medical Payments

This coverage provides payment for medical expenses incurred by the driver of a vehicle and any passengers in a motor vehicle accident, regardless of fault.

Uninsured Motorist

This component pays for your injuries or your employed driver's injuries, and some property damage, when the accident is caused by an uninsured driver. This also covers hit-and-run accidents, and in some cases, includes underinsured motorist coverage for an at-fault driver who does not carry enough insurance.

Comprehensive Physical Damage

Comprehensive physical damage coverage provides payment for damage to your vehicles from vandalism, theft, fire, flood, or other named perils.

Collision Coverage

If your vehicle hits or is hit by another object, collision coverage will provide payment for the resulting damage.

If you have any vehicles that you use for business purposes, you need to get a commercial policy to ensure you're covered. Contact Society Insurance Network today to see how we can help protect your company and its assets.

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