Cars, trucks, work vehicles: whatever you drive every day, you have to have insurance on it. There is actually more than one type of insurance that covers what you drive. It all depends on what you use the vehicle for. The following types of insurance cover your vehicle in the capacities listed.
Standard Auto Insurance
Standard auto insurance is your typical car insurance. Varying levels of coverage provide protection in the event of an accident. It covers cars and trucks, even if you use your vehicle as a work vehicle fifty percent of the time. If you do use your personal vehicle for work (e.g., as a ride-share service or as a contractor's truck), then you may want to look into other types of insurance for additional coverage.
Commercial Auto Insurance
Commercial auto insurance is insurance that covers your vehicle when you use your personal vehicle for work purposes. For example, if you are a door-to-door vacuum salesperson, and you use your personal vehicle to drive to different neighborhoods to sell vacuums, but then you also use your vehicle to get groceries, go to church, pick up and drop off the kids at school, etc., commercial insurance still covers the vehicle. You just have to use the vehicle primarily for business for commercial insurance to cover damages.
Umbrella Insurance
Umbrella insurance is a unique type of insurance used to cover both your car and your home. It is neither a complete homeowners insurance policy nor a car insurance policy. Rather, it is a "filler" policy that covers the gaps in insurance that are not covered by individual and separate policies when the value of the items needing coverage is in excess of what standard homeowners and car insurance policies typically do not cover. The umbrella insurance is also a form of bundled insurance since it covers a number of valuable personal property items.
Business Insurance
Business insurance essentially covers your business. However, that means that if your business happens to be taxi service or freight shipping, the vehicles you own as part of that business tend to be covered in the event of an accident. It differs from commercial auto insurance in that, for the most part, commercial auto insurance focuses on the vehicles themselves and business insurance focuses on the business as a whole. You can think of business insurance like umbrella insurance for business: it exists to prevent lawsuits in the event of an accident, but it also covers vehicular damages.
For more information about auto insurance, contact an insurance agency like J&A Family Insurance Solutions.
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