Personal & Commercial Auto Insurance: The Thin Line

Personal & Commercial Auto Insurance: The Thin LineKnowing what personal and commercial auto insurance covers may save your nonprofit from expending its already limited resources.

If your nonprofit organization doesn’t operate a fleet of business vehicles, you may never even have given commercial auto insurance an initial thought. But it’s possible you may need a commercial auto insurance policy even if you don’t fall into the category of business vehicles, particularly if you do more with your vehicle for work other than just commuting. To avoid the confusion, here are the main differences that you should know to be properly covered.

Where you drive isn’t the problem, it’s why.

There isn’t really a limit to how much you can drive under the general auto policy, just as long as it’s for personal reasons. For example, if you have to deliver pizzas for your job, you need commercial auto insurance to cover you in case you get into an accident.

Careful with what you are carrying. 

Commuting to a job is one thing, and it counts as a personal trip as far as auto insurance companies are concerned. But bringing along heavy tools and expensive equipment is another. Let’s say you’re a construction worker and you are hauling a trailer filled with ladders, expensive drills, and other supplies. You are seen as a higher risk to insure because your chance for property damage and theft have shot up. Commercial auto insurance will cover the damages.

Commercial auto insurance has a very thin line that separates it from its cousin, personal auto insurance. Knowing when you need one or the other may save you months of headaches. Contact the experts at Colorado Nonprofit Insurance Agency, part of HUB International in Denver, Colorado at 303-894-0298. We will work with you to ensure you are getting the most out of your coverage.