The Key Differences Between Commercial Auto Insurance and Personal Auto Insurance

Understanding the differences between commercial and personal auto insurance is essential for anyone who drives in Louisiana, whether you’re a business owner, self-employed professional or simply use your vehicle for personal needs. At Harlan Insurance, we know that choosing the right coverage can be confusing, so our team is here to clarify what sets these policies apart and help you make informed decisions.

What Is Personal Auto Insurance?

Personal auto insurance is designed for individuals and families who use their vehicles for everyday activities, such as commuting or taking road trips. This type of policy typically covers:

• Liability for bodily injury and property damage
• Uninsured/underinsured motorist coverage
• Physical damage to your vehicle (comprehensive and collision)

Personal auto insurance is not intended for vehicles used primarily for business purposes. If you use your car for work-related tasks beyond commuting, your personal policy may not offer coverage in the event of an accident.

What Is Commercial Auto Insurance?

Commercial auto insurance is tailored for businesses and self-employed professionals who use vehicles as part of their operations. This coverage is essential for:

• Businesses with company-owned vehicles
• Contractors, delivery drivers and rideshare operators
• Employees who drive their own vehicles for work tasks

Commercial policies generally offer higher liability limits and can be customized to cover multiple drivers, specialized equipment and business-specific risks. They may also include coverage for loading and unloading, non-owned vehicles and hired vehicles.

Key Differences in Coverage and Eligibility

Use Case

Personal policies cover private, non-business use. Commercial policies cover vehicles used for business activities.

Drivers

Personal insurance usually covers the named insured and family members. Commercial insurance can extend to employees and other authorized drivers.

Coverage Limits

Commercial policies often have higher liability limits to address the increased risks of business use.

Vehicle Types

Commercial insurance can cover a wider range of vehicles, including trucks, vans and specialty vehicles.

Why Does It Matter in Louisiana?

State law depends on how you use your vehicle. Using a personal policy for business purposes can lead to denied claims or gaps in coverage.

Ready to review your auto insurance options? Contact us today.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.