Does My Car Insurance Cover Me for Business Use??

While car insurance on its own is relatively simple, things can get complicated between the lines of personal use and business use. While your personal auto insurance policy may cover limited commercial use, it typically won’t cover much when it comes to using a vehicle primarily for business.

Difference Between Commercial Auto and Personal Auto Insurance 

Personal auto insurance is the basic policy that common drivers carry in order to cover damages to their vehicle and liability related to operating the insured vehicle. This insurance is typically owned by an individual and often includes:

Commercial auto insurance offers policies with many of the same coverages, but also offers coverage specific for vehicles used for work. This insurance may be purchased and carried by an individual but is more often bought by a business to insure their owned or hired vehicles.

While personal auto insurance may only cover work purposes as far as commuting to and from work or taking the rare client out to lunch, commercial auto insurance covers all aspects of business-related driving, such as transporting equipment, frequently traveling between clients, transporting people, and more.

Does Commercial Auto Insurance Cover Personal Use? 

Contrary to personal auto insurance covering work purposes, commercial auto insurance does cover personal use. Company vehicles offered by a business are often covered by the business’ commercial auto insurance policy.

Be careful when insuring a vehicle to decide which type of insurance you need. Vehicles that are primarily used for personal activity should be covered under a personal auto insurance policy. Insuring a vehicle with the wrong type of policy can leave you vulnerable to accidents and lawsuits not covered, as well as lead to an insurance provider canceling your coverage. If you drive a company vehicle, ask your employer about their commercial auto insurance policy.