How is commercial auto insurance different from regular auto insurance?
Although commercial auto insurance has many of the same policy features as a regular car insurance policy, there are some differences between the two policies. The main differences between a commercial and personal auto insurance policy include:
Available levels of coverage
The cost of both types of insurance
Tax deductibility of commercial insurance
Who’s covered by both types of policies
The amount of coverage needed to insure commercial vehicles is often higher than a regular car or truck because of their size, the amount of damage they could cause in an accident, as well as the value of their cargo. For these reasons, commercial policies usually cost more than regular car insurance coverage.
However, unlike personal car insurance, commercial auto coverage may be tax deductible. As necessary business expenses, you may be able to deduct the cost of your insurance, along with vehicle repairs, garage rent, lease payments, new tires, and tolls.
Finally, unlike regular auto insurance coverage a commercial policy can cover a variety of drivers, including your employees, your family, and others whom you name on your insurance agreement. Regular car insurance covers members of your household, along with others who drive your car occasionally, unless they have non-owners coverage.