Why Keep Commercial Auto and Personal Auto Insurance Policies Separate?

Commercial Auto policies can be written on vehicles that are business use only, both business and personal use, or a personal only use vehicle can be added to a Commercial Auto policy. Sometimes mixing the use of the vehicles makes sense and sometimes it doesn’t.

Take a contractor with a newer truck with full coverage as an example. If the truck being used for their contracting business is on a personal policy all drivers in the household will be at least partially rated on the vehicle. So let’s assume there is a young driver living in the household that “will never drive” that new truck. Putting that truck on a Commercial Auto insurance policy lets you insulate yourself from the added cost of the young driver. But remember - that young driver cannot drive that vehicle, ever. If they do, it may not be covered.

Another example is a sales representative. If you are not making deliveries but are visiting different locations during the day a Commercial Auto insurance policy might be less expensive, and your Personal Auto insurance policy might actually deny coverage based on business use of the vehicle; especially if you have commercial signage on your vehicle.

If you have a Commercial Auto insurance policy you might want to add your personal vehicle to it for the multi-car discount. Just identify it as personal use only, and make sure all drivers of the vehicle are listed on your policy. Commercial Auto policies do not require all household members to be listed, but they do require all regular or even occasional drivers to be listed so always make sure your spouse is listed if you include a personal vehicle on your Commercial Auto policy.

Most people think that Commercial Auto insurance policies are more expensive than Personal Auto insurance policies, but that isn’t always the case. If you are self employed talk to your agent or give us a call (503-489-3143 or 503-693-2852) to discuss your options.

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