Commercial vs individual auto insurance
Is commercial auto insurance more expensive than individual auto insurance or is it simply a different type of car insurance?
When it comes to commercial insurance policies, there are two questions one must ask. First, will I qualify for one? Second, will I receive an actual commercial policy? In answer to the first question, one must meet one of two qualifications. One qualification is the number of vehicles you own. If you own five or fewer vehicles, you will not be considered for a commercial policy. The second qualification has to do with the name on the policy. If you have less than five vehicles and they are under your personal name, you will most likely not receive a commercial policy. A possible exception is if these vehicles are classified as business vehicles (e.g., truck, taxi, limo, delivery vehicle). To have the best chance of qualifying for commercial insurance, one should have five or more vehicles that are registered under a business/company name rather than a personal name.
In answer to the second question regarding receiving an actual commercial policy, it is important to remember that it is difficult to get an actual, "pure" commercial policy at the present time. Years ago, people attempted to avoid paying accident charges by classifying themselves as contractors or businessmen. In so doing, they could have their personal vehicles placed under a commercial policy. Insurance companies caught up and have changed it, making it more difficult today to obtain a commercial policy.
In some states, an insurance company will offer payments for personal auto insurance. However, no states offer payments for commercial auto insurance. Thus, the individual named on the policy will not receive any money from the company if he/she is the holder of a commercial policy. He/she may receive payments by having individual auto insurance.
In answer to the question above, commercial auto insurance will likely cost more than individual auto insurance. It is covering insurance on more than one vehicle and most likely, more than one driver. Comparing the features of a commercial policy versus an individual policy on an auto insurance company revealed some differences between the two policies. The commercial policy included lease gap coverage and sound receiving and reproducing equipment. The former allows the company to cover the rest of your lease if the car is totaled and the remaining lease is more than the cash value of the car. The latter covers damage to permanently installed electronic equipment used for transmitting data or audio signals. There are other differences between the two policies, indicating that commercial insurance is slightly different from individual auto insurance.