Navigating the auto insurance world can be complicated, especially when determining appropriate coverage. Two primary categories of auto insurance are commercial and personal. While they share similarities, they serve different purposes and offer distinct protections.
Do I Need Personal or Commercial Auto Insurance?
Commercial auto insurance may help provide coverage for vehicles used for business purposes. It may be appropriate if you are operating a fleet of delivery vans, a truck for your landscaping or contracting business or using your car for business-related travel. It may help cover vehicles used for transporting goods, carrying equipment or transporting passengers for a fee.
Personal auto insurance may be appropriate for vehicles used for commuting to work, running errands or traveling for leisure. It’s the standard insurance maintained by most drivers.
Understanding Personal and Commercial Auto Insurance Premiums 
Insurers set auto insurance premiums based on numerous factors, including the driver’s claims history, driving record, type of vehicle insured and chosen coverages.
Your agent can help you shop for personal or commercial auto insurance coverage among reputable insurers to help you get favorable rates.
Is Auto Insurance Required in Massachusetts?
Massachusetts mandates that drivers have a minimum auto insurance coverage, and this applies to both commercial and personal vehicles. This requirement is designed to ensure that drivers can cover the cost of damages or injuries resulting from car accidents for which they are responsible. Massachusetts requires the following:
- Personal injury protection (PIP) may help cover medical expenses, lost wages and other accident-related costs regardless of who caused the accident.
- Bodily injury to others may help pay for third-party accident-related injuries you cause in an accident up to the policy’s limits.
- Property damage liability may help cover third-party accident-related property damage costs up to the policy’s limits.
- Bodily injury caused by an uninsured auto may help cover you, anyone you allow to drive your vehicle and your household members against injury-related losses after an accident with an unidentified or uninsured at-fault driver.
These are the minimum requirements, and drivers may purchase additional coverage for greater financial protection. Note that additional insurance beyond liability protection may be required for your circumstances. For instance, lenders often require guaranteed asset protection (GAP) insurance. Additionally, comprehensive and collision insurance can help pay for damage caused to your vehicle in an accident or incident.
Auto insurance policies are highly customizable. Your agent may recommend numerous policies and endorsements to help tailor the coverage to your individual or company needs.
How to Get Appropriate Personal or Commercial Auto Insurance
Selecting the right auto insurance depends on how you use your vehicle. It’s vital to assess your needs and consult with an insurance professional to ensure that you have adequate coverage.
Contact Schaffner Insurance Agency in Tewksbury, Massachusetts, for personalized quotes for appropriate auto insurance coverage.
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.