Commercial vs. Personal Auto Insurance

For many business owners, driving for business related purposes is a must. Whether you own a commercial fleet or use your personal car for business trips, having the right NM Commercial Auto Insurance policy is critical. While many don’t think twice about the repercussions of going without it, this could mean the difference between staying in business and failing to a lack of insurance coverage and accumulating claims. In this article, we will explore the differences in coverages and how they relate to your proper business practices.

Personal car insurance.

These policies are written much differently than their commercial policy counterparts. They are designed to protect that specific driver and there are a variety of factors that contribute to their premium policy price. Depending on the how the insurance carrier views the individual’s personal liability, these factors can affect the price positively and negatively.

According to Car Insurance Comparison, some examples of positive factors are having a clean driving record, being over 25, being married, living in a low crime area, having anti-theft devices on your vehicle, taking a defensive driving course and, as a student, having good grades. Some examples of negative factors are a poor driving record, being under the 25, being male, being single, living in a high crime area, and having a previous policy that was canceled due to non-payment.

Commercial auto insurance.

Commercial auto insurance is needed for any business who uses company vehicles. These policies can either name certain employees to drive the vehicles or provide blanket coverage for all of the employees.

However, if an employee is in an accident in a company vehicle and that employee is not covered by insurance, the company will have to pay out of pocket. This also opens the door for both the company and driver to be sued if they were at fault; Further, just as with personal car insurance, commercial car insurance rates can increase or decrease due to negative and positive factors. For example, the more established a business is, the lower monthly premium rates will be. The more claims that have been filed due to accidents or other damages, the more the monthly premium rates will be. Companies can lower their rates by hiring responsible drivers and training them appropriately, says the article.

At Daniels Insurance, Inc., we want to ensure your vehicles are properly protected. Our comprehensive policies can be tailored to meet your specific needs and requirements to provide you with peace of mind. For more information, we invite you to contact us today at (855) 565-7616.

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