Many business owners elect to insure their personal automobile under their company’s business auto insurance policy, but problems can arise when private passenger auto’s are insured under the wrong type of policy because of differences between the two types of auto insurance policies (commercial auto policies versus personal auto policies).
A personal auto policy will typically provide coverage to family members whereas a commercial auto policy does not. The personal auto policy extends liability, medical payments, uninsured and underinsured motorist coverage to the resident family members of the named insured unless they are excluded by endorsement. The commercial auto policy does not provide coverage for family members unless you endorse the family members onto the policy and many commercial auto carriers will not insure youthful drivers (under age 21).
Personal auto policies are not appropriate for insuring commercial vehicles and because commercial auto policies don’t include family coverage, the reverse is true.
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