Personal Or Commercial Auto Insurance – Which One Should You Get?

Choosing between personal and commercial auto insurance is a tough decision. When you run a small business where you use your vehicle for business and your routine needs, the decision can be somewhat daunting. Perhaps you should get the two policies then! But, won’t that be too expensive for you? 

Well, you can have two auto insurance policies on your vehicle. While it is possible and legal, we’d advise you against it. Unless you are working with a top-notch insurer, the act is like treading dangerous waters. At the slightest misunderstanding, you would be committing insurance fraud and it comes with hefty fines.

In a nutshell, stick to one auto insurance policy for your vehicle. But, which one would be most appropriate for you? Let’s find out!

Understanding The Difference Between Personal And Commercial Auto Insurance

The first step to making the best choice between personal and commercial auto coverage is understanding what they both entail and with examples. That is what this section will walk you through!

You might want to read this first: Save Money On Auto Insurance!


Personal auto insurance is a unique coverage for accidents on your car while commuting for personal needs. For this policy, the insurer only insures you as the owner of the vehicle and two members of your immediate family as maximum. 

For specifics, here are examples of the coverage you can expect from personal auto insurance:

  • Commuting to and from work (and not for work)
  • Trips unrelated to your business or job

On the other hand, commercial auto insurance is strictly for business use. The policy covers all instances of accident, theft, and vandalism to your vehicle while using it for work.

Perhaps that definition isn’t clear enough, these examples are the typical coverage you can expect from commercial auto insurance:

  • You use your vehicle to deliver goods to your customers
  • You use your vehicle to move work equipment
  • You drive your client or employee with your car 


By definition, commercial auto insurance has the highest liability limits. Do you know that this policy sometimes covers personal use? If an employee has permission to use your business vehicle, it won’t matter if they used it for work or leisure. This coverage will pay for damages, it also covers the occupants of the vehicle.

In contrast, personal auto insurance is limited to only you and the two registered family members. While the latter even depends on your insurer.

Also, because of the nature of commercial auto insurance, it can be expensive. Nonetheless, you will only pay a premium that correlates to the nature of your work.

Suggested reading: Why Is Insurance So Expensive?

Now that you know what the two common auto insurances entail, let’s help you pick the right one. And by the way, both are good choices. You only have to know when to choose one over the other!

When Should You Choose Personal Auto Insurance?

If you mostly use your vehicle for routine work, personal auto insurance would suffice. But when you still use that same vehicle for occasional business trips, you might want to try something like a pro version of personal auto – it comes with limited coverage for your business.

When Should You Choose Commercial Auto Insurance?

If your vehicle is strictly for business, commercial auto insurance is the best option for you. Besides, state laws often require that business-owned fleets have a commercial auto policy. And the best part of it all is that there is the perk of economies of scale – the more vehicles you insure, the lesser the premium.

Alternatively, you can try Hired and Non-owned Auto Insurance, HNOA! What is HNOA?

If you and employees use personal cars for business, HNOA covers any loss that might happen. It also covers vehicle leases or rents for work purposes.

But ultimately, your preferred insurer determines the success of any auto policy you would eventually get. About that, be careful and pick a company that resonates with your business ideals. The company should be well-versed in your area of residence or business. If by chance that is in Myrtle Beach, we, Aaron Miller Insurance, are the one you seek. Get in touch today, and let’s craft a personalized solution for you!

At Aaron Miller Insurance we’re here for you, and we’ll work to get you the best deal possible. Stay in touch with us at 843-999-0575 or email directly to so that we can make sure your policy is always working for you!

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