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When you own your own business there is a good chance that you may have to have a company vehicle. Like a personal car you will have to keep an insurance policy on the vehicle. The question that comes up often is what kind of policy should I have on the car. Here are a few tips to determine which policy should be bought to insure the vehicle.
The Difference Between Commercial Auto Insurance and Private Auto Insurance
Commercial Insurance
This is a policy that includes coverage for physical damage, liability exposures and other types of situations that are not covered by a typical auto policy. A commercial insurance policy can be expanded to cover several vehicles at once or it can only cover one vehicle. Sometimes this type of policy may be talked about as truck insurance or a type of fleet insurance. Depending on the size of the vehicle and what it is used for may determine what kind of policy you can have. For instance some cargo vans will not be insured by a private auto policy because that style of vehicle is used by contractors for job related activities. Be sure to speak with your agent in the North Carolina area if you have any questions.
Private Auto Insurance
This type of insurance covers only personally owned private cars. Usually the owner will have liability coverage and maybe physical damage coverage. If the car is used for business related activities, the auto insurance company can cancel the policy and require the owner to get a commercial auto policy.
As your independent agent in Burlington, North Carolina we can help you understand what kind of auto policy you need for your car. If you have any questions about commercial insurance, please call us so we can help answer your questions. Make sure to have the right kind of policy for your vehicle just in case you need to file a claim in the future.
Disclaimer: The content of these blogs do not represent any type of specific coverage’s offered by the agency.