Commercial vs. Personal Auto Insurance: Key Differences

Understanding the difference between commercial and personal auto insurance is essential for anyone who drives in Texas, especially if you use your vehicle for both business and personal reasons. At Lamas Insurance Agency, we can help you navigate these distinctions so you can choose the right coverage for your needs.

What Does Personal Auto Insurance Cover?

Personal auto insurance is designed for individuals and families who use their vehicles for everyday activities, such as commuting, running errands or taking road trips. Polices may include coverage for the following:

• Damage from accidents that occur during personal use
• Liability for third-party injuries or property damage you may cause to others
• Medical payments, depending on the state
• Financial support following accidents with an at-fault driver who has inadequate insurance

What Is Commercial Auto Insurance?

Commercial auto insurance can cover vehicles used for business purposes, whether it’s a single company car or an entire fleet of delivery trucks. Although it appears to work a lot like a personal auto policy, the coverage is built around the risks businesses run into every day, such as the following:

• Transporting goods or equipment
• Driving clients or employees
• Using your vehicle for deliveries or service calls
• Owning or leasing vehicles under a business name

In Texas, vehicles used for business are required to have commercial auto insurance, as personal auto insurance excludes coverage for business activity. This means individuals who use personal vehicles for work-related tasks, such as contractors hauling materials, must generally be covered under a commercial auto policy.

Find the Right Coverage

If you’re ready to review your coverage or have questions about your policy, contact us today to speak with our team.

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.