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Commercial Auto Insurance Compared to Personal Auto Insurance in New Jersey

Owners of commercial and personal automobiles are required to carry auto insurance. It is important to understand the difference between the two policy types if you are a business owner in New Jersey and want to be fully protected.

Commercial Auto Insurance

In NJ, a commercial auto insurance policy provides liability protection for drivers and business owners if they are involved in an accident with another vehicle or cause damage to property.

If your commercial vehicle driver is at fault for a loss, your commercial auto insurance policy will cover liability for property damage, bodily injury and medical payments. The policy may also cover attorney and legal costs if the case goes to court. This relieves a huge potential financial burden from the driver and the business owner.

If a company's employees use their own vehicles for company business, or if the company rents vehicles for employees to use, personal auto insurance may not provide coverage. The company will need "non-owned and hired" coverage for these vehicles.

Personal Auto Insurance

Anyone who owns a car in New Jersey must carry personal auto insurance. The basic requirements under the law state that all personal auto insurance policies need to include personal injury protection (PIP), liability coverage and uninsured motorist coverage. A variety of optional coverages and deductibles are also available. The types of coverage and deductibles that a person chooses will affect the cost of their insurance premium.

When a personal automobile is used for businesses purposes, the insurance company may deny coverage in some instances. Because business use of a vehicle can vary on an individual basis, it is advisable to contact your agent or carrier if you use your car for any business purposes and want to make sure you have sufficient coverage. In general, vehicles registered in the name of a business will require coverage under a commercial auto insurance policy.

Read about what business auto insurance is and the different types of commercial insurance coverage options that may be available for your business.

Call 866-233-9807 or find a local independent agent to learn more about the differences between commercial and personal auto insurance in New Jersey.  If you need additional information it can be found on our Contact Us page.