While almost every person and every business that owns a vehicle needs auto insurance for the vehicle, not everyone needs the exact same kind of auto insurance. Here are four different types of auto insurance you may need.
1. Standard Personal Auto Insurance
Personal auto insurance is what most drivers purchase when they get auto insurance. Policies that offer this insurance usually have fairly standard coverages and limits, and they can be underwritten for many different vehicle makes and models.
If you purchase a new or pre-owned vehicle, the most likely insurance you'll need is standard personal auto insurance. Most vehicles that aren't used for business-related driving are considered personal vehicles.
2. Classic Car Insurance
Classic car insurance is specialized insurance for older vehicles, and it's adjusted to meet the needs of these vehicles.
Classic car policies will contain all of the coverages that are legally required to drive on public roads, but they also might have protections that are specifically for older vehicles. A policy might help pay for hard-to-find original equipment or cover a car while it's being restored, for instance.
How old cars must be in order to qualify for classic car insurance depends on the specific insurance company. If you think your car is older, you can check with an insurance agent to see whether it qualifies as a classic car for the purpose of underwriting.
3. Standard Commercial Auto Insurance
Commercial auto insurance is similar to personal auto insurance, except commercial policies are for business-owned vehicles. Policies may cover cars, trucks, passenger vans, and cargo vans that a business owns and uses. They tend to have coverages and limits that are adjusted for the various risks that come with driving for work.
If you own a business that has its own vehicle, that vehicle likely requires commercial auto insurance. If it's commercially registered in your state, personal auto insurance won't be suitable.
4. Hired/Non-Owned Auto Insurance
Hired/non-owned auto insurance is a type of commercial auto insurance, except these policies, are for vehicles that a business uses but doesn't own. The policies commonly provide liability protection while the non-owned vehicle is being driven for work purposes.
You might need hired/non-owned auto insurance if you own a pizza shop or floral shop that makes its own deliveries. It's also used when contractor employees have work vans. The insurance is well-suited for situations where employees regularly drive their own cars while working.
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