Most people are used to being on the road several times a day. However, as mundane as this task might be, an unexpected accident can change everything. Auto insurance helps protect you from the financial repercussions of a collision. However, you need to make sure you have the right policies in place to ensure coverage. For example, there are times when your car needs to be covered by commercial insurance, not a personal one. The guide below explains when each is necessary.

What Is Personal Auto Insurance?

Drivers who own or lease a car are expected to have personal auto insurance, including bodily injury liability coverage equal to $30,000 per person and $60,000 per accident, and $25,000 in property damage liability. These policies cover incidents that might occur when you’re driving for personal reasons, such as to work or the grocery store. 

What Is Commercial Auto Insurance?

When the car is owned or leased by your business, a commercial auto insurance plan is necessary. It provides coverage for incidents that occur while you’re operating the vehicle for business purposes, like driving a client to a property. 

Many vehicles are used exclusively for professional reasons, such as limousines, delivery trucks, taxicabs, and anything with a commercial license plate. Semi-trucks, tow trucks, or dump trucks may also need commercial policies by default because these heavier vehicles could cause more serious damage if involved in an accident.

Which One Is Right for You?

While the above seems straightforward, if you use a personal vehicle for business purposes, any accidents you get into might not be covered by a personal policy. For example, special commercial insurance may be necessary if you are delivering goods that you made or serving as a ride-hail driver. An insurance agent can help clarify this foryou.

If you’re ready to invest in personal or commercial auto insurance, turn to the professionals at Integrity Insurance Solutions in San Marcos, TX. Proudly serving clients throughout the Texas Hill Country region, they offer a variety of solutions to protect your most important investments. Visit the website for more information, or call (512) 396-2211 to speak with an agent.