Is Business Use Covered on My Personal Auto Policy?

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If you use your personal vehicle for business or commercial use, you may want to double check your insurance policy and see if you are covered.

You’ll need to look into buying a commercial vehicle policy or make sure your existing personal auto policy includes coverage for business use. Every company has different guidelines on what they consider business use. They may not cover business use without an extra surcharge or they may not cover it at all depending on what you do.

If after looking over your policy you aren’t sure whether you are covered for business use, here’s a few items that can help.

How to determine if you need a commercial policy

  1. Call your agent or insurance company

    Ask your agent if you need a commercial vehicle policy. They can help you with your unique situation.

  2. Ask your current company how they determine commercial use?

    One definition could include “engaging in transporting goods for compensation or a fee,” which includes pizza or newspaper delivery, catering, door-to-door consulting services, landscaping or snowplowing services, logging business, day care/church van services or farm-to-market delivery. People who do these kinds of work should consider purchasing a commercial vehicle policy.

  3. Do you need more liability coverage than a personal auto policy provides?

    Generally, a commercial auto policy offers higher limits of liability than a personal vehicle policy.

  4. Do you need special coverage for situations encountered while conducting business?

    Commercial auto policies usually offer these coverages, and they’re normally not available with personal auto policies. These include hired and nonowned auto coverage and coverage for towing a trailer for business use.

  5. Do you need to list any employees as drivers?

    Commercial auto policies allow you to list anyone that you employ. You don’t have that option with a personal auto policy.

  6. Do you need any special filings or a Motor Carrier Permit?

    You’ll need commercial auto coverage if the vehicle you use is owned by a corporate partnership or driven by employees, or if it’s used to haul tools or equipment weighing more than 500 pounds, make deliveries or heavy enough to require state or federal filings.

Business Auto Insurance Roseville, CA

Alex Rue Insurance Agency, Inc. is an independent insurance agency in Roseville, CA representing top-rated insurance companies in California that write commercial auto insurance. We provide rates from multiple California insurance companies to find you the best coverage at the lowest price. As an independent insurance agency we’re here to help you find the best insurance policy for you.

Call Alex Rue Insurance Agency at 916-572-9815 to see if a commercial auto policy may be right for you or if you can add business use to your personal policy.

Start your quote online or call Alex Rue Insurance Agency today at 916-572-9815.