Insurance companies offer several different types of auto insurance, and each type insures different vehicles. Here are some of the different auto insurance policies that people and businesses purchase.
Personal Car Insurance
Personal car insurance is perhaps the most common type of auto insurance, as it's what most people purchase for their vehicles. Personal car policies insure most vehicles that are used for personal use, which means non-work use. For the purposes of auto insurance, commuting to/from work is considered personal.
Personal car insurance policies come with many coverage options, which allow these policies to insure a wide variety of vehicles that people use.
Classic Car Insurance
Classic care insurance is a form of personal auto insurance for collector vehicles. These are most often antique cars, but they also sometimes can include rare or exotic cars.
Most classic car insurance policies include all of the coverage found in standard personal car insurance policies, but classic policies often have some additional protections. They might extend coverage to car shows, cover original parts, and guarantee towing on a flatbed tow truck, for example.
Commercial Car Insurance
Commercial car insurance is used to insure a variety of business vehicles. Cars, pickup trucks, SUVs, and other smaller vehicles can all be covered by a standard commercial car insurance policy.
The base coverage that commercial car insurance offers is similar to that of personal auto insurance policies. Except, commercial policies tend to have higher limits. They also can often insure several cars.
Hired/Non-Owned Commercial Car Insurance
Hired/non-owned commercial car insurance provides liability protection for vehicles that a business relies on but doesn't own. Businesses might use this insurance if employees regularly drive their cars or rented cars for work. Without this insurance, a business could be held financially responsible for an accident that an employee was in while driving for work.
Unlike other auto insurance policies, hired/non-owned commercial car insurance only provides liability protection. It's typically up to employees to insure their own vehicles against damage, and insurance that covers damage can be purchased from rental car providers.
Food Truck Insurance
Food truck insurance provides auto insurance for the actual vehicle of a food truck. The insurance also comes with coverage that a restaurant might want, such as general liability, food contamination, and business income coverage.
Solo food trucks obviously purchase food truck insurance, but restaurants might also purchase a policy if they operate a food truck in addition to a brick-and-mortar eatery.
Contact a company like Illinois Insurance Center Inc to learn more.
Share10 May 2022
I still remember the first time I had to chose an insurance policy; I was 17 years old and had just saved up enough money to afford my very first car. I was so excited to begin driving, but overwhelmed with all of the different auto insurance options. My father helped me chose a full-coverage policy that would cover the cost of my car if it were to become damaged in an accident. When I inevitably caused a small fender-bender as a new driver, my insurance company paid for my car repairs, so it sure was the best policy for me! Now that I am older and have learned a lot about home insurance and other types of insurance, I thought I would make a blog to help others who need insurance advice, like what my dad gave me. I hope I can help you make wise insurance decisions!