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Understanding Your Policy: Personal Auto vs. Commercial Auto

Understanding Your Policy Personal Auto vs. Commercial AutoPurchasing an auto insurance policy can seem complex, especially when you are not sure about the type of coverage you need. If you own a business and use a vehicle solely for the business, there are certain types of vehicle usage that is not covered under your personal policy. Therefore, it’s important to understand the differences between a New York Personal Auto Insurance policy and a New York Business Auto Insurance policy.

Basics of Personal Coverage

Personal auto insurance is designed for the needs of consumers, either for individuals or families. If you are in an auto accident, it protects your personal assets by providing the funds needed for car repair, medical expenses or liability charges. Obtaining personal auto insurance is relatively easy; however, you do need to provide specific information to ask for a quote, such as:

  • The Vehicle Identification Number (VIN)
  • Make & model of car
  • The names, ages, and basic information of primary drivers

Basics of Commercial Coverage

Commercial auto insurance is designed for the needs of businesses that have several drivers and multiple cars. According to the Association of Motor Vehicle Administrators, commercial companies do not register vehicles the same way as a personal vehicle. A company will have to provide different information to obtain a quote. Another difference between commercial and personal coverage comes down to the amount of drivers. For example, a business may need coverage for fifteen drivers, even if it’s for occasional usage. The rates will be much higher as a result of the number of drivers.

In a nutshell, when it comes to drivers, vehicles, and purposes, personal drivers don’t have the same kind of insurance concerns as a business. Businesses have higher liability concerns, requiring them to adhere to higher liability insurance requirements, such as protecting employees, passengers, work gear, and equipment.

Whether it be your business investment or your loved ones, it’s important to get the right kind of coverage you need. At A.J. Benet Inc., we know how important it is to keep you safe. You and your vehicles deserve quality coverage from a responsive, community-based agency that always goes beyond just the policy. Call us today at 888.639.4560 for information on our New York Auto Insurance Policies.

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