If you use a car in the regular operation of your business, it is imperative to have some sort of insurance on that vehicle. When doing so, there are two different kinds that you can choose from: personal and commercial car insurance. This confuses many people because in many cases, they are able to use one of the other interchangeably. So, how do you know which one is the better choice for you?
Overall, the two types of insurance are functionally going to be very similar. For general use, personal car insurance will offer you a more broad spectrum of coverage than you would find in the commercial variety. Because of this, if you are using a typical car that you use for both personal and business usage, you will likely be best served with a standard personal insurance policy on the vehicle. This is particularly true if you are the only driver of the vehicle.
If the vehicle is not a typical car or is a specialized vehicle that would not normally be used personally, you will need to purchase a commercial policy. This is also the case if you will be transporting unusual or dangerous materials, are in need of a higher liability coverage amount than you would normally get on a personal policy, or if you have any kind of specialized needs that a personal policy is not equipped to handle.
The other benefit of a commercial policy is that you may qualify for a multiple policy discount from your insurance provider if you are purchasing all of your business insurance policies from the same provider.