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Commercial Auto Insurance and Personal Auto Insurance |
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Getting the right kind of auto insurance quote is vital if you want coverage that actually pays claims. |
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| Author: Norris Rios |
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Commercial Auto Insurance
Commercial auto insurance covers business owners form the liabilities associated with owning and/ or using a car for business purposes - even if those business purposes take up a very small percentage of the car's overall use. If you run or own a business, and your car is used for anything within that business, then you probably need to look into commercial car insurance coverage. Commercial uses of your car include running errands to pick up Post-It notes and making coffee runs. Additionally, if you store or transport company or clientele possessions in the car, then this makes another case for commercial auto insurance coverage.
Personal Auto Insurance
Personal auto insurance covers the liabilities and accidents of individuals who drive their cars only for personal reasons and not for business purposes. If your car is used only for personal travel, which includes driving to and from work, or completing personal errands, then personal auto insurance is likely the right type of coverage for you.
Why It Matters
The goal of auto insurance, be it personal or commercial, is to ensure that your personal finances are minimally affected in the face of a driving related accident or injury which is, or isn't, your fault. But in order to price your policy correctly, insurance companies need to know what you use your car for. Because your risk of accident and the possible expenses of related damages can change depending on whether you use a vehicle for business or personal reasons, or both.
When you do not give your insurance company all the information they need t price your policy correctly, then you take away their ability to minimize their own risks adequately. As a result, they will deny claims if they find that there were inaccuracies in your application for coverage. This may result in the rescission, or cancellation, of your policy with a refund of premiums.
In general, cutting corners with insurance doesn't usually benefit a policyholder. If you think coverage will be more expensive when you admit that there are some commercial uses for your vehicle then you may be right, but you will also be ensuring that you get and pay for coverage which is useful to you, and not just a false sense of security that will not pay off when it is needed. So honestly assess your vehicle usage before getting auto insurance quotes and you will make yourself, your business and your family more financially secure in the long run.
About Author
Norris Rios has shared his vision and professional opinion on a vast array of topics and http://www.insurancehits.com/auto-insurance/auto-insurance-addons/commercial-and-personal-auto-insurance.html#cont is one of the sites where you can read more of Norris Rios's contributions.
Article Source:
http://www.1888articles.com/author-norris-rios-24667.html
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