Owning and running your own business has become increasingly popular these days. After all, who doesn’t want to be their own boss? But what does this mean for businesses that use their personal vehicle for business?
Well, according to central experts, depending on the type of business, who drives the vehicles and how they are used, you may be able to keep your vehicles insured under your personal car insurance policy.
What types of businesses are covered by a personal auto policy?
The types of companies that are generally considered acceptable when keeping your business vehicle on your personal auto policy include:
- Broker
- Consultants
- Lawyers
- Seller
- Doctor
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Who can use the vehicle under a personal car policy?
Most companies where you (or family members of your household) are the sole operator of the vehicle and you are not transporting goods for delivery is considered an acceptable exposure for your personal auto policy. If you have employees who regularly use your vehicles, a commercial policy is more suitable.
The weight of the vehicle also plays into the equation. Vehicles over 10,000 pounds gross weight do not qualify for a personal auto policy.
How does vehicle use affect my personal car policy?
If you use your vehicle for any type of delivery, such as pizza, mail, flowers, hazardous materials, etc., you must insure it commercially. In addition, any type of transport for hire, such as a taxi, daycare, elderly care, etc., would need commercial insurance.
An exception to the transportation-for-hire rule may exist when you work for a transportation network company, such as Uber or Lyft. Many car operators have developed personal car policies specifically for these carpooling activities that provide coverage for these situations. Check with your auto insurance company to make sure you still have coverage.
Learn more | YYou Just Had a Car Wreck: Now What?
What if my company provides a vehicle for my use?
Some companies provide employees with a company vehicle to drive for business and personal use. In this case, you usually have coverage under the company’s commercial policy. Depending on your employer’s requirements, it’s never a bad idea to cover yourself on your personal car insurance policy, which can easily be done with a additional approval.
The value of Central’s comprehensive auto protection
From basic protection to the superior coverage of ours Signature Auto Policy, Central offers a wide range of car insurance to suit your personal needs. Every central personal car policy includes 24/7 access to our Roadside assistance program and we offer a number discounts and credits to help you save money on your insurance coverage. Check with your independent agent to find the policy best suited to your specific needs and situation.
The above information is of a general nature and your policy and the policies provided may differ from the examples provided. Please read your entire policy to determine your actual coverage.
Products underwritten by Central Mutual Insurance Company and related companies.
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