Difference between personal and commercial auto insurance NYC

Difference between personal and commercial auto insurance NYC

Keeping your vehicles away from all potential damages and threats, you need auto insurance. However, there is some difference when you compare your personal car insurance with commercial auto insurance NYC. Therefore, you need to be informed about it. It helps you understand what the requirements for personal and commercial insurances are. It also helps you the difference and similarities between both the insurances.

Here, we are discussing the differences between personal and commercial vehicle insurance New York to help you out if you own both types of vehicles:

As described earlier, auto insurance keeps you protected financially in the case of any damage or threat to your vehicle. You can keep yourself in a secure position and manage the finances if you are involved in a road accident, your car has been stolen, or you have faced an unfortunate incident with your vehicle.

However, here are some of the differences that we should know while discussing commercial and personal vehicles:

  • There are numerous auto insurance policies in the market.
  • You also need to add all those risks that you want to include in your policy.
  • Commercial limits also create a difference in both types of policies.

General Differences

Generally, personal auto insurance covers all your individual needs. On the other hand, commercial auto insurance helps you customize the policy according to your business needs. More specifically, personal auto insurance does not cover your commercial needs, and commercial insurance does not suit you if you have a private vehicle.

Choosing the right quote is a must!

Before finalizing your insurance policy, you need to be informed about the difference in premiums, coverage, and benefits. Asking quotes from some of the best insurance companies is the best tactic to ensure that you are buying the best insurance policy at the most affordable rates. However, there are some instances that you need to consider applying for an auto insurance quote. We are mentioning all of them below:

  • You need to mention that you have a home-based business or are self-employed.
  • The difference occurs when your employees use your vehicle regularly.
  • You should tell that you use your personal vehicle to perform your business tasks.
  • Mentioning that you use your commercial vehicle for family and other individual tasks is also necessary.
  • If you use your vehicle for ridesharing, it is necessary to mention it as well.
  • More importantly, you must have knowledge about the differences between personal auto insurance and commercial affordable car insurance NYC.

When do you need commercial car insurance coverage? 

There are some significant differences between personal and commercial auto insurances. For instance, you do need a personal auto insurance policy if you use your car to drive around your neighborhood and to go and come back from your workplace. However, when you use your vehicle for business meetings, picking up and delivering orders, and other business-related activities, the best practice is to go for commercial auto insurance.

The factors that can affect the auto insurance premiums.

Insurance costs depend on various factors, which can be different for different auto insurances. However, commercial vehicle insurances are relatively more expensive than personal auto insurances. We are mentioning some key factors now that create a difference when you go for buying auto insurances.

Let us discuss all of them briefly!

  • The market value of your vehicle determines the costs of insurance. New cars may have cheap insurance premiums, and the insurances of old cars can be expensive.
  • The purpose of using a vehicle also determines the costs of auto insurance. The average mileage in a year affects the insurance premiums a lot.
  • Modifying the vehicle determines your driving style. So, if you have added unique features to your vehicle, the insurance companies change the rate of insurance premiums, which may be more than your expectations.
  • The coverage limit also changes the insurance rate.
  • There may be some other specific factors related to your business requirements and driving needs that can change the insurance rates.

Concluding Remarks

Buying commercial insurance needs some expertise that a layman may not have. Therefore, hiring insurance agents or insurance brokers in New York is the best practice to find the most suitable insurance policies at the most affordable rates. These people have the expertise to identify your needs and recommend you the best accordingly. Therefore, engage insurance brokers when you plan to buy auto insurance, whether it is personal auto insurance or commercial auto insurance.

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