Commercial Auto Insurance Vs Personal Auto Insurance

Whether it is a commercial vehicle or a personal car, auto insurance is an essential tool in order to cover up financially, if in case any accident takes place. However, there is a blurry difference between both the types of auto insurances – commercial vehicle insurance and personal auto insurance. Since a commercial vehicle needs to ply more on the road, a business use auto insurance in Louisiana has different coverages compared to private car insurance. Read more to know the actual difference between the two.

Private Car Insurance:

An auto insurance policy that offers damage coverage for your private car, including third party liability plan and own damage, is a personal auto insurance. Its comprehensive plan covers the following –

• Monetary help for the damages and the losses during accidents
• Financial coverage against natural calamities, riots, thefts and fire
• Personal accident coverage for the owner-driver
• Third party liability

What is excluded from personal auto insurance in Louisiana?

• Business purpose vehicles and cars are not covered
• Passenger coverage is excluded, until and unless add-on for passenger coverage is opt for
• If add-on is not opt for, it does not cover personal driver expenditure

Business Use Auto Insurance:

A motor insurance policy that offers financial protection against damages and losses for vehicles used for commercial and business purposes is termed as business use auto insurance. Generally this type of insurance is provided to cabs and taxis where the car is used to commute people from one location to the other. The following are covered under this plan –

• Offers monetary security to the policy holder’s business use vehicles and cars, if any damages take place due to accidents
• Covers complete loss due to thefts, natural disasters and fire
• Offers personal accident cover of the driver
• Covers passengers’ loss
• Includes third-party liability

What is excluded from commercial vehicle insurance in Louisiana?

• Does not cover if the car or the vehicle is used for personal purpose
• Regular wear and tear
• Does not include any type of mechanical and electrical failure
• No coverage for damages and losses done by radiation, nuclear attack or war
• No financial security for damages done in course of using the car/vehicle beyond its limitation
• Damages are not covered if the insured car/vehicle is driven by someone else other than the driver mentioned in the policy

Thus it can be concluded that, although both, personal auto insurance and commercial vehicle insurance in Louisiana were introduced to offer monetary security to cars and vehicles, they both vary from one another in terms of coverages.

The Original source is here: https://insuranceagencycovington.wordpress.com/2021/01/01/commercial-auto-insurance-vs-personal-auto-insurance/