In Texas, cars and trucks aren’t just for commuting – many are used for business. But here’s the catch: if you use a vehicle for business purposes, your personal auto policy may not cover you in an accident. That’s where commercial auto insurance comes in.
Let’s break down the key differences so you’ll know which type of policy fits your situation.
What Is Personal Auto Insurance?
Personal auto insurance is designed for everyday driving – commuting, errands, family trips.
Covers:
- Liability for injuries and property damage
- Repairs to your car (if you add collision/comprehensive)
- Your medical expenses (depending on coverage)
Does not cover:
- Business use of your car (like deliveries or transporting clients)
What Is Commercial Auto Insurance?
Commercial auto insurance is built for vehicles used in business operations.
Covers:
- Liability for accidents caused during business use
- Physical damage to company-owned vehicles
- Employees driving company vehicles
- Specialized vehicles (service vans, trucks, fleets)
Example: If your employee is driving a company van to a job site and causes an accident, commercial auto covers it. A personal policy would not.
Key Differences Between Personal and Commercial Auto
| Feature | Personal Auto | Commercial Auto |
|---|---|---|
| Who it covers | Individual & family | Business, employees, vehicles |
| When it applies | Commuting, personal errands | Business use, client transport, deliveries |
| Vehicles covered | Personal cars, SUVs | Company vans, trucks, fleets, specialty vehicles |
| Liability limits | Standard limits (e.g., 100/300/100) | Higher limits to match business risk |
| Add-ons | Collision, comp, roadside | Hired/non-owned vehicles, tools & equipment |
Who Needs Commercial Auto Insurance?
- Contractors and service businesses (electricians, plumbers, landscapers)
- Real estate investors with company-owned vehicles
- Companies with delivery drivers
- Businesses with employees who regularly drive for work
Cost Factors in Texas
Commercial policies usually cost more than personal auto because:
- Liability limits are higher
- More drivers may be insured
- Business vehicles often have higher mileage and wear
However, the extra cost is small compared to the financial risk of being uninsured in an accident.
FAQs: Commercial vs. Personal Auto
Can I use my personal car for business?
Yes, but your personal policy may deny claims if you use it for deliveries or transporting clients.
Do I need commercial auto if I just have one truck?
Yes, if it’s used primarily for business purposes.
Does commercial auto cover employees driving their own cars?
Not by default. You may need hired/non-owned auto coverage.
Why Work With an Independent Agency
Every business is different. A landscaping company needs different coverage than a consultant with one vehicle.
At TX Insurance Finder, powered by Hi-Lo Insurance, we help business owners in Texas compare personal vs. commercial auto coverage and find the policy that protects both their drivers and their bottom line.
Conclusion
The line between personal and commercial auto insurance can be blurry, but getting it wrong could leave you without coverage when you need it most.
Visit our Auto Insurance in Texas page to explore your options and request a personalized quote with TX Insurance Finder, powered by Hi-Lo Insurance.
