What is the key difference between personal and commercial auto insurance? Many entrepreneurs get by with nothing but a personal policy, while others jump on the opportunity to invest in a commercial policy as soon as possible. What sets one apart from the other.

There are a lot of features that commercial policies make available that you won’t find in a personal insurance package, but the key difference really comes down to who’s driving the car.

If you send an employee out to handle a bank transaction and they get into an accident on the way, a commercial auto policy can cover that, but a personal auto policy will not. Commercial policies from providers and agencies like HBW Insurance Group are primarily designed to ensure that a business owner who enlists their employees to drive on company time, in a company car or in their employer’s car, will be protected should something go wrong while that employee is on the road.

It’s true that some personal policies will allow for other drivers in certain circumstances, but you’d be hard pressed to find one that covers paid employees borrowing your personal car for business purposes.

Most pizza delivery drivers, Uber drivers, Lyft drivers, etc. will provide their own personal insurance. Uber and Lyft drivers in particular are driving their own cars and working as private contractors. In other words, while they may answer to the company, they are technically their own bosses. This isn’t the case when you hand your new hire the keys to your car and ask them to pick up some supplies.

In any event, when in doubt, it’s worth talking to your provider about your policy to make sure that you are covered in both business and personal affairs.