When it comes right down to it, personal and commercial insurance coverage for vehicles is very similar. We all know it can be dangerous on the road—it's not just a matter of being a good driver and staying in your own lane, literally and figuratively. You also have to contend with all the other drivers, who may not be as invested in safe driving as you are. Both types of vehicle insurance exist to get you insurance compensation if you're involved in an accident so you're able to repair or replace your vehicle promptly and get back to your daily routines.
The key difference is that commercial auto insurance applies to commercial-use vehicles, and personal vehicle insurance applies to personal-use vehicles. As a result, the two varieties differ in areas such as coverage limits, available coverage types, and, to some extent, the risk exposures they address. They also have something in common—neither type will give you the insurance protection you need against financial losses if you use the vehicle for the other purpose when an accident occurs. The exception to this is one-off situations, as we mentioned above.
Both personal and commercial car insurance covers more or less the same perils by providing liability, accident benefits and loss or damage coverage. It's essential to understand whether your coverage is comprehensive or only covers named perils, meaning that only the perils that are specifically listed on your insurance policy—the "named perils"—are covered.