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Commercial vs Personal Auto Insurance

Commercial vs Personal Auto Insurance

It would seem that an auto insurance policy is an auto policy is an auto policy. As long as you have auto insurance, does it really matter who owns the vehicle or the usage of the vehicle? In a word: yes. Insurance companies rate policies based on vehicle information, driver age and driving record, location and usage. Properly insuring your vehicle can actually save you money in the long run, since improperly insured vehicles can result in cancelled policies or lower-than-expected claim payouts.  Here is what you need to know to insure your vehicle properly.. Personal Vehicles Used Commercially If you own a vehicle and have it insured under a Personal Auto Policy (PAP) you should be aware of your policy exclusions. In the standard Personal Auto Policy (PP0001) coverage form there are the following exclusions: A.6. We do not provide Liability coverage for any insured…while employed or engaged in the business of selling, repairing, servicing, storing or parking vehicles designed for use on public roadways. A.7. Maintaining or using any vehicle while that insured is employed or otherwise engaged in any business (other than farming or ranching) There is a small amount of giveback on the policy for point two, but only under these conditions: This Exclusion (A.7.) does not apply to the maintenance or use of a: Private passenger auto; Pickup or van; or “Trailer” used with a vehicle described in a. or b. above. While most PAPs are based on the PP0001, some include additional exclusions or conditions, including amount of usage per period (week, month, policy term) and vehicle size. Read your policy and talk...