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When do you need commercial auto insurance? That’s the question.

Well, if you’re considering starting your own business or if you already operate your own business, then it’d be a very good idea to look into commercial auto insurance.

For an in-depth look at commercial auto insurance in Tennessee rather than Nevada, check out our article on the subject.

What is the difference between personal and commercial auto insurance?


Commercial auto insurance is similar to personal auto insurance in that it covers collisions, medical costs, natural events, and uninsured motorist expenses.


The difference between personal and commercial coverage is that the latter covers vehicles that are owned and operated by your business, while personal insurance doesn’t.

Commercial auto insurance also comes with unique capacities, such as allowing you to cover a fleet of vehicles.

Businesses that have large groups of vehicles, such as buses, utility vehicles, and rental cars, can benefit greatly from commercial auto insurance.

Differences Continued

Personal auto insurance cannot provide coverage for activities related to your business.

Beyond this main difference, the differences between personal and commercial auto insurance are quite nuanced due to the complexity of the insurance world.

Commercial insurance naturally covers more people and offers a wider range of possibilities, which incidentally makes them a unique challenge.

An insurance company, for instance, will need to look at numerous details when creating a commercial insurance policy for your business.

To learn more about what commercial auto insurance policy your company needs, contact us today.

Do you need commercial auto insurance as a sole proprietor?

Many small businesses that operate as sole proprietorships bring up the question, “When do you need commercial auto insurance?”

This is a difficult question to answer since a sole proprietorship (as you know) is when your company is in your name and not separated legally from the business itself.

Whether your business is a sole proprietorship, LLC, or corporation, it’s smart to seek the advice of an experienced insurance company when settling on a policy.

Call us today, and one of our experts will go over the intricacies of commercial auto insurance as it relates to your sole proprietorship.

What is covered in a commercial auto insurance policy?

Here’s what can be covered by a commercial auto insurance policy:

  • Liability. This is the minimum requirement and only covers the injured party or vehicular damage to the other party when you are at fault in an accident.
  • Medical. Medical expenses due to automobile accidents are usually covered. Just to note, the medical side of auto insurance coverage is an addition to your health care coverage. Nevada state law does not mandate this coverage, but it is offered.
  • Comprehensive. Comprehensive coverage covers bad weather, damage caused by animals, theft, etc. Comprehensive coverage is an additional form of coverage that you can add to your policy.
  • Uninsured motorist. This is an additional form of coverage that you can add to your policy. In accidents with the uninsured, underinsured, or those who flee the scene, this form of insurance protects you financially.
  • Collision. No matter who caused the accident, collision insurance covers repairs for your vehicle.

Do I need both commercial and personal auto insurance?

You might still be asking: 

“When do you need commercial auto insurance? Do I need both commercial and personal auto insurance?”

The answer is…you probably do.

You most likely own a personal vehicle, and if you also own a vehicle for your business, then it’s a good idea to look into getting both a robust personal auto insurance policy and a commercial one.

If you are using your personal car for work purposes, then you will need HNOA insurance.

Contact us for more information today.

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