Commuter Car vs. Pleasure Car Insurance: Everything You Need To Know

Did you know that you can save money by purchasing pleasure car insurance on a vehicle that qualifies for it? Do you know what kind of vehicle is considered a commuter car? Did you know that, depending on its usage, a car might need business or commercial insurance? Learning about the different types of auto insurance and getting the right one can help you save money and ensure that you are adequately covered in the event of an accident.

Pleasure Car Insurance vs. Commuter Car Insurance

Getting car insurance is one of the first things most people do when they purchase a car. In most states, car insurance is required to obtain vehicle registration and put license plates on your car. It is an essential prerequisite to getting out on the road.

If you are looking to obtain insurance for a car that you own, chances are you will need a personal auto insurance policy. Both pleasure car insurance and commuter car insurance are personal policies. Personal policies are appropriate for cars that are used to benefit an individual rather than a company.

To determine whether you need pleasure car insurance or commuter car insurance, you need to look at how you use the car. If you use the car to get back and forth from work, you will need commuter car insurance. Commuter car insurance will also cover vehicles that are used to get to and from school. If you never use your car in a work context, you can choose pleasure car insurance.

Why Does Getting the Right Kind of Car Insurance Matter?

You Can Save Money

Insurance companies price their policies according to the likelihood that there will be an accident involving the insured car. If the chance of an accident is higher, they will charge more money for the policy. If it is lower, they will charge less. If your car is in a category where there is a small likelihood of an accident, paying more for a type of insurance intended for cars in a different category is unnecessary.

You Can Be Sure Your Car Is Adequately Covered

If an accident does occur and you have the wrong kind of car insurance, you might have to pay the damages out of pocket. This could include

  • Damage to your vehicle
  • Damage to another person’s vehicle
  • Damage to other types of property
  • Medical bills in the event that you are injured
  • Medical bills in the event that someone else is injured
  • The cost of renting a temporary vehicle
  • Payouts in the event of a lawsuit

By obtaining the right kind of insurance for your car, you gain the peace of mind of knowing that you can take advantage of the insurance if you have an accident on the road.

Talk With Your Insurance Company

A representative from your insurance company can help you purchase the right kind of car insurance. It is important to communicate clearly with him or her and provide all the appropriate details regarding your car. Be sure to give them the following information:

  • The kind of car
  • How often the car will be driven
  • How many miles you expect to accrue
  • Who will drive the car–specify if anyone other than you will use it
  • Where you will drive the car–specify if you intend to take it across state lines on a regular basis
  • The purpose of your driving

How Are Pleasure Car Insurance and Commuter Car Insurance Priced Differently?

Pleasure car insurance is usually less expensive than commuter car insurance. This is because commuter cars tend to be on the road during the commuting hours, which are the heaviest times for traffic. More vehicles on the road mean that an accident during commuting hours is more likely. Commuter cars also spend more time on the road and accrue more miles, because people tend to drive to work more frequently than they drive for pleasure. Every minute and every mile your car is on the road adds to the likelihood that it will be involved in an accident.

Many people don’t know that they can pay less for their insurance policy if they buy pleasure car insurance. To be fair to their customers, insurance companies take into account the fact that pleasure vehicles are often garaged at the times when accidents are most likely to happen.

Everything You Need to Know About Pleasure Care Insurance

What Makes Your Car a Pleasure Vehicle?

If your car is never used for work, either to benefit you or a company, it is most likely a pleasure vehicle. Your car could be a Ferrari, but if you are using it to get back and forth from work, it is not a pleasure vehicle. Meanwhile, a 2012 Honda Civic that you only use to go fishing on the weekends is a pleasure vehicle.

How Are Pleasure Vehicles Used?

Here are some common uses for pleasure vehicles:

  • Driving to see friends and relatives
  • Road trips
  • Afternoon drives
  • Shopping for items that you need for personal use
  • Going to car shows and expos

When Do You Need Commuter Car Insurance Instead?

If you occasionally use your car to get to and from work or school, you should speak with your insurance agent. He or she can determine if commuter car insurance would be more appropriate.

Everything You Need to Know About Commuter Car Insurance

What Makes Your Car a Commuter Vehicle?

If you are using your car to get back and forth from work or school, it is a commuter vehicle.

What Kinds of Cars Can Be Commuter Vehicles?

The kind of vehicle you drive matters. Most sedans, compact cars, and even some off-road vehicles can qualify as commuter cars. However, if you are driving a trailer, a bus, or another kind of large vehicle, talk to your insurance agent. It might need a different type of insurance.

Commuter Insurance vs. Business Insurance

If you use your car to run errands for your company, you might need business insurance. Commuter insurance is intended for cars that provide a means of transportation for an employee or a student. It is not intended for the transport of supplies, inventory, or clients.

Business insurance covers cars that are used in normal driving conditions for the aforementioned purposes. Two examples of car usage that necessitates business insurance are pizza delivery and taking people to and from the airport.

How It’s Decided

How do insurance companies decide whether a car needs commuter insurance or business insurance, given that both types cover cars that are used in a work context? They determine if the usage of the car goes beyond transporting the car’s owner to work. A Toyota Prius that is used by an individual to drive to and from a law firm where that individual works is a commuter vehicle. The same Toyota Prius would need business insurance if it were used by a real estate agent who drives to work and then uses it to go to various properties throughout the day.

If you have commuter insurance and you get into an accident while making a trip for business purposes, there is a chance that you will pay out of pocket. If the car is covered by a business policy, either the insurance company will pay the damages or, depending on the details of the accident, the company that paid for the policy will be liable for them.

Business insurance tends to be more expensive than commuter insurance. This is because vehicles that transport goods have a higher rate of accidents than those which do not. Moreover, commuter cars are usually parked during business hours while their owners are working.

Commuter Insurance vs. Commercial Insurance

While cars that are used for commuting should be covered under commuter insurance and cars that are used for business errands in normal traffic conditions should have business insurance, commercial insurance is necessary when a company owns cars and other vehicles that are used primarily for work.

It is especially necessary for specialized vehicles that are used for tasks that could not be performed by other types of vehicles. Often, the conditions in which these vehicles are driven are not typical. Examples of vehicles that need commercial insurance include:

  • Vehicles that pull a trailer to transport work equipment
  • Cars and vans used for food delivery services
  • Cement trucks and other vehicles used for construction
  • Tourist buses

About Farm Vehicle Insurance

If your vehicle is primarily used on a farm, ranch, or orchard, you may actually need farm insurance. Premiums for farm insurance are even cheaper than premiums for pleasure car insurance.

Who Is Covered by Pleasure Car Insurance and Commuter Car Insurance Policies?

Personal car insurance usually follows a car, not an individual. Therefore, if you get into an accident driving a car for which you purchased a personal insurance policy, the policy applies. Usually, personal auto insurance policies have what is called a permissive driver clause saying that the owner may occasionally lend the car to another person. Therefore, if you get into an accident driving another person’s car, their policy (not yours), will apply.

Business and commercial policies are sometimes more specific about who can drive the ensured vehicles. When you purchase these types of insurance, it is important to ask if the people who will drive the car need to be listed on the policy.

What Do Pleasure Car Insurance and Commuter Insurance Policies Cover?

These two kinds of policies cover mostly the same types of expenses that may result from an accident. A basic policy that meets the legal requirements will cover damage caused by your car to another vehicle, another type of property, or another individual. However, it might not cover your car. You should talk with your insurance agent and let him or her know if you want your policy to provide more insurance. The types of expenses personal auto policies cover are:

Property Expenses

When your car is damaged in an accident, your policy might pay to repair or replace it. If you damage another type of property, such as a fence or a pole, this would also fall under the category of property expenses. Reimbursement for a stolen car would also be considered a property expense.

Liability Expenses

Your liability is your legal responsibility to provide financial compensation to others in the event that you damage their property or do them physical harm.

Medical Expenses

When people are injured during car accidents, the money that must be paid as a result is considered a medical expense. Medical expenses could include hospital fees, lost wages, and funeral costs.

Who Should Buy the Policy?

In the case of pleasure car insurance and commuter car insurance, the owner of the insured car is generally the primary driver. This person should purchase insurance. If a car is owned by a company but is frequently driven by its employee, the company should purchase the insurance policy. It is illegal to make an employee pay to insure a company-owned vehicle.

Absolute Choice Insurance: We Can Help You Get the Right Type of Insurance

Insurance policies are very specific as to what kinds of expenses they cover and in what situations. They are also priced to ensure that if your car is unlikely to be involved in an accident, you will pay less for your premium.

Don’t miss the opportunity to pay a lower premium if your car is a pleasure vehicle. Similarly, if you often use a commuter car to run errands for your business, you should check to see if commuter insurance is right for you, or if you need business insurance. You don’t want to pay out of pocket for expenses that could have been covered if you had the right insurance.

Contact Absolute Choice Insurance in South Florida and Central Florida for more information. They can be reached by phone or online:
South Florida Phone: 305-275-1777
Central Florida Phone: 407-344-4444


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