The right insurance coverage is crucial to safeguard all your assets, including the vehicle. The most frequent questions we receive from small-business owners are: “What’s the difference between personal and commercial auto insurance?” and “Do I require commercial insurance for my vehicle?” We want to clarify. It’s essential to know the specifics of each type of insurance policy covers to ensure that you’re not opening yourself up to a loss.

What Is the Definition of Personal Auto Insurance?

As the name implies, private auto insurance gets created to safeguard those who own the vehicle solely for personal purposes. The unique use is driving a car to and from work and business. The penalties of not being insured for a car owner, lessee, or driver could be anywhere between $5,000 and $50,000.While each insurance policy differs, the basic coverages are almost always covered. For example, a realtor estate agent who travels to listings and back-to-listings gets covered by their insurance policy. Here are a few examples of personal auto insurance policies:

  • Third-party liability insurance helps protect you if someone dies or is injured or their property gets damaged due to an accident where you are found responsible.
  • Statutory accident insurance coverage can provide you with financial support should you be injured in an auto accident.
  • Uninsured auto insurance can help protect your family and you if you are injured or killed by a hit-and-run motorist or by one who does not have insurance.

What is Commercial Auto Insurance?

Suppose you’re a contractor who drives to and from construction locations or baker making deliveries – if you have any business that requires utilization of a business vehicle, you need commercial car insurance. Commercial auto insurance gets tailored to meet your company’s requirements, not your requirements. Moreover, the policy options may differ between insurance companies. It’s important to know what’s covered in your policy to ensure that you don’t leave yourself at risk of possibly a loss. A few essential elements of coverage for small-sized business owners are:

  • Medical expenses and lost wages due to injuries you, your drivers contracted to, or your passengers.
  • The liability of loading and unloading is when transporting goods to events or customers.
  • Car insurance replacement coverage in case your commercial vehicle needs to get repaired so that you won’t be unable to go to work. Also, it is accessible for personal insurance policies too.
  • If you operate a commercial vehicle that travels through other provinces and states, you can get additional insurance to protect you and your employees on these journeys.

Take a look at these three questions to find out whether you require commercial automobile insurance:

A few business owners believe that their insurance will protect their vehicle in business use; however, this isn’t always the scenario. If you’re a smaller company owner and aren’t sure whether you’ll need the commercial insurance for your vehicle, here are some questions you could ask yourself to assist you in making the decision.

Who is the vehicle’s owner and operator? If you’re a solo entrepreneur who runs your business out of your home and doesn’t travel to different work sites or make deliveries to consumers. If this is the case, your insurance policy will most likely be sufficient to cover you. Suppose the vehicle you own gets owned by a business and used for business purposes such as delivery or transport of equipment. In that case, it gets recommended to have insurance for commercial vehicles. All full-time employees who utilize the vehicle to conduct business should get identified as drivers on the insurance policy for your commercial auto.

What is the purpose of the vehicle every day? Let’s suppose you’re a contractor traveling between work sites carrying your costly tools and equipment on the back of your truck. You must get covered by commercial auto insurance if you utilize your vehicle for any of the following reasons: your coverage will not cover the cost of repairs or replacement if you get injured in an accident or if your equipment is damaged.

  • You are responsible for transporting or delivering material, goods, or other items.
  • You carry tools and equipment.
  • Your vehicle gets used to training driver education
  • You can transport customers for any reason

What kind of car is it that you are driving? As with personal insurance policies, the type of car you use will affect the insurance protection you need. Commercial insurance for your vehicle if you utilize an SUV or Jeep, Truck Tractor, trailer, or any other vehicle specifically made for maintenance or construction purposes.

In addition, larger commercial vehicles insurance are more likely to cause damages if they cause an incident. Your insurance should reflect this.

Other frequently asked questions regarding commercial auto insurance

Can my commercial auto insurance policy will cover personal usage? Personal use usually covers your commercial insurance policy, but it’s better to verify this before selecting an insurance provider and policy. Always consult with your agent or broker before assuming that you’re covered.

What is the cost of car insurance in the commercial market cost? Every policy is unique, and many factors influence auto insurance prices. There are a few things you can do to lower your insurance costs. If you’re a small-business owner, additional insurance coverage is tax-deductible.

Do I require an insurance policy for rideshares? I’m a rideshare driver. Some ridesharing firms cooperate with insurance companies to provide insurance coverage for commercial use for all their drivers. Suppose you are a driver of Uber or Lyft. In that case, you must consult your insurance provider to determine if your insurance policy permits ridesharing and whether you require additional coverage from your commercial insurance.

Here, Commercial Insurance, Ottawa is to help. Call us at (613) 454-5640 or send an e-mail at