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Frenchforever

Personal Auto vs Commercial Auto

4 posts in this topic

What is the difference if a business owner finds himself in the following scenarios:

 

Both accidents are at The owners fault

 

  1. He gets in to an accident with his personal use vehicle with a insurance policy under his name, can his business gets sued (lets say his business is an LLC) can the lawyers take part of his business?
  2. He gets in to an accident with his personal use vehicle with a commercial insurance policy, can he get sued and can the court take a part of his business (if necessary to pay damages?)

 

basically my main question is: is there a difference between using commercial or personal insurance in a personal-only-use car?

is it better to have all vehicles on a commercial policy?

or have them as separate?

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1. If the use of the personal vehicle was in the course and scope of the business, the business could be sued, otherwise no. Yes, as a personal asset it could be at risk. 2. Same as above. The main difference is the coverage and the cost. If the personal vehicle is going to be used in the business at all or titled in the name of the business then a commercial policy would be advisable, otherwise no reason to.

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45 minutes ago, Frenchforever said:

is it better to have all vehicles on a commercial policy?

or have them as separate?

 

That's a question that can ONLY be answered by a thorough examination of the vehicles, the drivers, and the business because it can go either way depending on the actual circumstances.

 

 

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Liability for the damages doesn't depend on the type of insurance policy insures the vehicle.  It only determines whether the insurance company will defend and pay the claim.  

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