Commercial Auto Vs. Personal Auto Insurance – What’s The Difference?

Commercial Auto Vs. Personal Auto Insurance – What’s The Difference?

Do you know when you need personal auto insurance and when to choose commercial auto insurance?

When you need personal auto insurance, it can be easy to assume that your regular car insurance policy will cover any accidents or damage while driving your vehicle. However, this is not always the case – depending on how and where you use your car, you may need to add an optional endorsement or get commercial auto insurance.

When you use your vehicle for business purposes, whether driving to and from meetings or hauling tools and equipment for a job site, you’ll want to consider getting commercial auto insurance. For example, if you’re using your car as part of your job (e.g., as a realtor or real estate agent delivering documents), you’ll need to add an endorsement on your auto insurance policy.

This blog by Daniel Fabulic Insurance Agency discusses the difference between commercial and personal auto insurance. Keep reading to learn more!

What is Commercial Auto Insurance?

Commercial auto insurance covers the vehicles used for business purposes. This type of insurance is essential for businesses because it can help protect them from liability in an accident.

What is Personal Auto Insurance?

Personal auto insurance is an insurance policy that offers protection for vehicles used for personal use. This type of insurance is vital for individuals because it can help protect them from liability in an accident.

What’s The Difference?

There are a few key differences between commercial and personal auto insurance:


Commercial auto insurance typically provides more coverage than personal auto insurance. This is because businesses have a higher risk of being involved in an accident since they often drive large or heavy vehicles that can be more challenging to operate.


Personal auto insurance only covers personal liability – it does not cover liabilities that arise from commercial activities. For this reason, most personal vehicle owners will need both personal and commercial auto insurance if they use their vehicles for work purposes and personal use.


Commercial auto insurance typically costs more than personal auto insurance due to the increased level of coverage provided. However, business owners may benefit from discounts depending on their driving history and other factors.

Which One is Best for You?

The auto insurance you need will depend on your vehicle’s usage. If you only use your vehicle for personal purposes, personal auto insurance will be sufficient. However, you will need commercial auto insurance if you use your car for commercial purposes, such as delivering goods or driving for a ride-sharing service.

Make your final decision carefully after studying different factors and your vehicle usage.

Bottom Line

In a nutshell, commercial auto insurance is for businesses, and personal auto insurance is for individuals. Of course, there are always exceptions to the rule, but that’s generally how it works. If you have any specific questions about which type of policy would be best for you or your business, please don’t hesitate to give us a call at Daniel Fabulic Insurance Agency in Frank Fort, KY. We would be happy to help!

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Daniel Fabulic Agency
3933 Bardstown Rd
Ste C
Louisville, KY 40218

(502) 230-4445

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