Business Auto Insurance vs. Personal Auto Insurance
If you use a vehicle for business in any capacity—delivering products, meeting clients, or transporting equipment—understanding the difference between personal and business auto insurance is critical. At The Slocum Agency, we often see drivers unintentionally underinsured because they assume their personal policy covers business use. Here's a clear breakdown of how the two differ:
Usage Purpose:
Personal auto insurance covers everyday driving like commuting and errands.
Business auto insurance covers work-related use such as deliveries, transporting tools, or job site travel.
Coverage Scope:
Personal policies may exclude business activities.
Business policies offer broader protections designed for commercial use.
Who’s Covered:
Personal policies usually cover just the vehicle owner and family.
Business policies can include employees and multiple listed drivers.
Vehicle Types:
Personal insurance is typically for standard cars and SUVs.
Business insurance covers commercial vehicles like vans, trucks, and fleets.
Liability Limits:
Personal policies carry standard liability limits.
Business policies are built with higher limits to reflect greater risk.
Equipment & Cargo:
Personal policies don’t usually cover business equipment or inventory.
Business policies can be customized to include cargo and attached equipment.
Claim Risk:
Using a personal vehicle for business can lead to denied claims if not disclosed.
Business policies ensure proper protection during commercial use.
If you’re unsure whether your current coverage matches how you use your vehicle, let us help. Our team at The Slocum Agency in Warwick, Rhode Island is experienced in evaluating both personal and business auto needs—and making sure you’re covered no matter where the road takes you.
📞 Contact us today for a quick coverage review or a business auto insurance quote. We’re here to help keep your wheels—and your business—moving safely.
