delivery driver

Does My Car Insurance Cover Me for Business Use?

If you don’t drive a company-owned vehicle, chances are, you’ve never considered the need for a commercial auto insurance policy. After all, everyone drives their car to and from work without needing to change their policy. However, if you use your personal vehicle for business tasks during the workday, your personal auto insurance may not protect you if the worst should happen. When professionals start to use their personal cars for business use, where does your insurance draw the line?

Personal Auto Insurance

If you own a personal vehicle, you’re required to have auto insurance coverage. Your personal car policy will take care of you, your passengers, and your property in the event of an accident. However, if the accident occurs while you’re on the way to meet a client or are hauling commercial goods, you might find your claim getting denied.

Commercial Auto Insurance

Your personal insurance policy will cover your regular commuting needs. While there’s no limit to how much you can drive under your personal policy, commuters generally drive less than commercial drivers. When you drive for work, regularly use your vehicle for work-related duties, or operate a company-owned car, you will need a commercial insurance policy in place. The business must take out a policy to protect their employees and journeys.

Whether you’re working for a company or you’re the boss, here are some examples of work-related excursions that require commercial auto insurance:

  • Your job requires you to drive daily to meet multiple clients
  • You haul commercial goods
  • You transport passengers for work reasons
  • Your vehicle is kitted out with permanent work equipment
  • Your vehicle is a pickup or work van
  • You allow employees to drive your personal vehicle work-related purposes
  • You travel with expensive equipment/tools for business

When Your Personal Policy is Enough

Not everyone who works needs to buy a commercial insurance policy. There are a few situations in which you can use your vehicle during the workday under your personal policy. A few situations include:

  • You grab coffee for co-workers on the way to work
  • You occasionally drive your personal vehicle to a business meeting
  • Your commute is to a single job site daily
  • You rarely run an errand or make a single delivery for your boss

Deciding Which Policy Suits Your Current Needs

It can be difficult to understand which category your daily activity falls into. That’s why having an insurance agent you can trust is important. If you have unique delivery services or a team of drivers with a fleet of vehicles, you need to be sure you are well-protected on the roads. When accidents happen, it could cost you hundreds of thousands of dollars to get back on your feet. With the right insurance policy in place, you have peace of mind you’re protected.

Having the right commercial auto insurance is essential to protect your business and team. Work with reliable insurance agents that understand that every business is different and will require different needs.

Whether you need personal auto insurance or commercial auto insurance, we can help. Take the time to review your auto insurance to ensure you have optimum coverage for your needs, whether that’s business or pleasure. Contact Abbate Insurance to get started on your tailored policy.