For those that are self-employed or own a business in Los Angeles California, you need to know the difference between your personal car insurance policy and how it relates to commercial auto insurance.
California Commercial car insurance policies cover the increased liability risks that arise from daily business operations. If you transport supplies/goods or people and an accident occurs, you (and your insurance policy) would be liable for any damages.
There are many differences between commercial and personal auto insurance, but the main differentiation is the extent - higher liability limits and purpose of coverage. Businesses have many concerns private individuals don't share. Even if you use your work truck for personal trips at night or weekends, it may be a commercial vehicle if you also use it for work purposes other than commuting.
Insurance companies consider commercial auto insurance and personal car insurance to be 2 very different types of policies due to the differences in liability and risk. Personal policies are written with the average private citizen and their needs in mind, while commercial policies are designed to address the unique needs and situations that arise from commercial use.
If you have any question as to whether you should have personal or commercial coverage, contact David’s Insurance Services so you get answers and the appropriate coverage.