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Commercial Auto Insurance vs. Personal Auto Insurance

Personal auto insurance covers most four-wheel vehicles such as trucks, vans, and cars that are for personal use only. However, if these vehicles are for business use then commercial auto insurance is required. All businesses require some sort of insurance for their vehicles.

Commercial auto insurance is required in the trucking industry because it offers unique coverage that personal auto wouldn’t. Specifically, it  protects against the many risks involved with operating a large truck carrying expensive goods.

What Makes Commercial Auto Insurance Unique in the Trucking Industry?

Trucking is very risky compared to other types of driving activities. Truckers are required to haul large loads for significantly long periods of time. In fact, it’s very common for truck drivers to cross state lines, participating in interstate commercial trucking.

All trucking vehicles are subject to the FMCSA’s regulations. One of the requirements by the FMCSA is that all trucks have to operate with a minimum insurance requirement. Since commercial trucks are prone to more damages than any other service vehicle, insurance is essential.

What Does Commercial Auto Insurance Cover in Trucking?

Commercial trucking insurance can cover two basic types of liability: general and primary. The general liability insurance policy for commercial trucking will usually include the following:

Slander, Libel, and False Advertising

General liability covers accusations and lawsuits surrounding slander, libel, and false advertising. This can be a very useful part of an insurance policy, especially if advertising is a part of the business model.

Injuries to Another Individual

If a person sustains injuries as a result of an at-fault driver, the insurance company will pay for their medical expenses. This insurance also applies to lawsuits that your company might face as a result of the injury. Liability insurance will cover the costs of medical and legal bills associated with an accident.

Damaging Commodities and Property

General liability insurance coverage is also quite useful when personal property is damaged. More specifically, damage to someone’s property due to a driver will fall under the insurance coverage. So whether the individual chooses to sue the company or ask for repairs, the provider will offer it.

If the driver delivers the payload to the wrong location, insurance will still apply here. It will also apply in case it sustains any damage.

Does Commercial Auto Insurance Offer More Coverage?

It’s possible to add more coverage to your insurance policy depending on your insurance provider.

Underinsured or Uninsured Motorist Coverage

If other drivers collide with your tuck, it’s possible that they either have no insurance or not enough coverage. In that case, this provision will help ensure that your company is not liable for the damages.

Cargo Insurance

This will cover any financial loss that occurs due to the cargo sustaining damage from traffic or natural causes like expiration.



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