Business Car Insurance vs Personal: What Are the Differences?

Did you know that 215 million U.S drivers have auto insurance? Auto insurance is an important responsibility of owning a car or vehicle. No matter what you drive or how often you drive your car, it’s vital to have insurance on it.

Here’s everything you need to know about business car insurance vs personal auto insurance and how to decide what you need covered.

What to Know About Car Insurance

There are several aspects of car insurance you should be aware of before purchasing insurance for your car, whether it’s for a business or your personal vehicle.

The first tip to keep in mind is that there are multiple factors that play into the price of your insurance. Your insurance company will determine the price by factors like: the make and model of the car, the driving record of the driver, as well as how often and when the car is driven.

If you’re driving the car in a more urban area, your insurance will take that into account as well. Age, gender, and marital status also play a part in the pricing of your insurance.

Another aspect to keep in mind is the different kinds of insurance and what kinds of accidents they cover. For example, liability insurance is required—this is in the event of a collision, injury, or death and the damage caused.

Collision insurance covers a collision or accident that is faulted by you. It can also cover pothole damage. Comprehensive insurance can provide protection when it comes to theft, floods, fires, and hitting deer. These are both optional but important to keep in mind when thinking about the differences.

Business Car Insurance vs Personal

Don’t know what applies for a business car? Here are some business car insurance tips.

A business vehicle is often used to deliver goods, equipment, or travel to different job sites. If your car is used for commercial use, you need to purchase commercial auto insurance instead of personal auto insurance.

Business car insurance will cover damages, medical bills involved with an accident, and any theft or damage done to the vehicle like vandalism. The vehicle should be titled to the business and will cover any drivers driving the business vehicle.

Business auto insurance can often cover larger claims and other legal problems, which is not the case for personal insurance.

The main difference between business and personal auto insurance is that the vehicle must be used for a business to qualify for business car insurance.

Classic Car Insurance

If you own a classic car, it’s vital to have insurance on it, even if you don’t drive it that often. There are different options to consider.

For example, there’s classic, collector, and antique. Depending on why you own a classic car can determine the right insurance for you. These insurances can often cover even the rarest classic car.

Another aspect of this type of insurance is based on how often you drive the car. If you don’t drive it often, then it will quality for this type of insurance.

You can click for more information on classic car insurance and if you qualify.

It’s Important to Be Insured

No matter what kind of car you own or what you use it for, there are different coverage options for the vehicles you own. Knowing the difference between business car insurance vs personal can help you determine where to start getting coverage.

Auto insurance will help keep you and your most important possessions protected. Always drive safely, no matter if you’re insured or not.

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