In New Jersey, it’s mandatory for drivers to purchase either a personal or commercial auto insurance policy for their vehicle. The minimum requirements for a standard policy include coverage for personal injury, bodily injury, and property damage. However, there are significant differences between commercial and personal auto insurance that you should understand before choosing a policy.
How Does Commercial Auto Insurance Differ from a Personal Policy?
Commercial auto insurance typically offers higher coverage limits than a personal policy. It also covers employees driving a company vehicle and accidents that occur when a vehicle is used for commercial purposes. Such purposes can include delivering orders to customers, transporting goods for sale at a local market, or visiting prospective clients. For instance, if you create custom T-shirts at home and have a traffic accident while delivering your shirts to a warehouse or local market, a personal auto insurance policy would not cover the accident as the vehicle was being used for commercial purposes. Conversely, commuting to and from your job is covered by a personal policy.
Learn More from Creative Risk Management LLC
It is crucial to ensure you have the right type of insurance coverage for your vehicle. If you’re unsure whether your coverage is adequate or if you want to purchase additional coverage not required by New Jersey law, contact the Creative Risk Management LLC team. We’ll help you navigate insurance policies and select the policy or policy bundle that meets your needs at an affordable cost.
