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Home » When Should You Buy a Commercial Auto Insurance Policy VS a Personal Lines Policy?
January 18, 2021

When Should You Buy a Commercial Auto Insurance Policy VS a Personal Lines Policy?

a man standing in front of a truck

Commercial Auto Insurance in Denver Colorado is offered

Most clients know when you buy a personal auto policy. But sometimes clients aren’t sure which policy to buy if they use their auto for both personal use and business use.  The coverage on a commercial auto insurance policy is similar to a personal lines auto policy, but if the policy is not written on the correct policy form, you could have trouble getting a claim covered.

What Two Factors Cause the Need to Purchase a Commercial Auto Policy

Corporate Ownership

If the vehicle is ‘owned’ by a business, you have to get purchase a Commercial Auto Policy. In fact, most personal lines carriers WILL NOT write a corporation as the Named Insured on a Personal Lines Auto Policy.

Vehicle Being Used For Business Purposes

An individual who uses their vehicle while in the course of their employment…..should purchase a Commercial Auto policy to make sure they are covered in a claim.


Some personal lines auto carriers will allow you to ‘endorse’ or add coverage for certain occupations that use their vehicle for business purposes. But, make sure your occupations is ‘acceptable’ and the ‘business use’ endorsement is added to your personal lines auto policy.

Other Important Things to know about Personal vs. Commercial Policies

  • Both policy types offer liability and comprehensive and collision coverage, towing and rental car reimbursement
  • Commerical policies offer higher liability limits of $1million  which most likely aren’t available on a personal policy which is capped at $500,000 in Colorado.
  • Commercial policies will cost more, because of the higher probability of a claim.

Denver West Insurance Brokers is local commercial insurance broker located on the west side of Denver in Golden, CO. We also serve the communities of Lakewood, Littleton, Morrison, Evergreen, Arvada and Summit County. Call us at 303-960-5290 and talk to one of our licensed agents and let us give you more information on this important topic.

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