The average business, commercial, and liability insurance plans all share in common one rule: you will pay more in premiums as you add on additional coverage. Another factor for each of these policy types is the number of drivers you have.

No one auto insurance plan exists to protect all of your assets: each type has limited coverage for potential claims.

Choosing between commercial, business, and personal auto insurance depends on how often you drive the car. If you transport people and objects from one location to another, for example, you may need to consider a higher-coverage policy.

The base-level protection for your car is personal auto insurance and covers one person in non-work-related situations. On the other hand, more than one driver operating the same vehicle would fall under business and commercial auto insurance, increasing your protection.

Finding the optimal commercial or business vehicle policy is not as easy as finding a personal lines auto policy. There are fewer business and commercial carriers, and these carriers are far more particular about the types of industry and usage risks they have an appetite for.

An experienced broker with multiple options is valuable to a company trying to find the optimal coverage.

Business vs. Commercial Insurance

The usage of work-related trucks and vehicles is the primary difference you’ll find between business and commercial insurance. While you can cover niche cars for specific jobs with commercial auto insurance, business auto insurance protects daily driving vehicles and scenarios.

For instance, a warehouse vehicle like an 18-wheeler would need commercial insurance to transport goods from state to state. Couriers, unlike a massive delivery vehicle, could pass with a business insurance policy to carry documents across town.

Business owners must understand what sets business and commercial insurance apart to avoid heavy litigation for having the wrong policy type. As a sole proprietor, would I need a personal or business plan? The answer would vary on how you use the plan on the job.

Since commercial vehicles have a greater risk factor, commercial auto insurance prices are usually higher than business insurance. The more you drive the commercial vehicle, the more chances you have of getting into a crash.

Your insurance rate will skyrocket as you log mileage into the company work truck from continuous use. A professional truck driver has less reaction time for split-second road or traffic changes than the average motorist.

Unlike a compact Sudan, heavy-duty construction vehicles can cause catastrophic vehicle and passenger damage. As you or an employee enter higher-risk auto scenarios, insurance rates will increase.

Multiple Drivers

Having multiple people operate the same car addresses the question of what policy type it should fall under.

Business and commercial policies in most cases protect specific drivers you list on the plan. Personal policies, unlike corporate auto insurance, can cover whoever is driving the car at the time.

Your insurance carrier will make the determination in the end since the policy may cover one employee or the entire staff.