A lot of people simply have to worry about personal car insurance, but for anyone who runs a business, knowing about commercial car insurance is absolutely necessary. It may be daunting at first to compare commercial insurance vs personal, but at the root of the two, the differences a relatively easy to understand.
Personal car insurance is designed to take care of a specific driver of a specific vehicle in the case of an accident. If the driver was at fault, then the driver’s insurance company would protect him or her by helping pay for the other person’s car, medical bills or whatever else was involved. It protects the individual from having to pay out of pocket in the case of an accident.
Commercial car insurance isn’t used by an individual, but by a company that uses vehicles. A policy can be written such that either a select group of employees is covered, or that any employee is covered. The key difference of commercial insurance vs personal is that in the case of commercial, if the driver is in an accident and is at fault, the company is protected from having to pay out of pocket for any damages. Commercial insurance protects the company from potential lawsuits from accidents that employees are involved in.