Automobile Insurance -Personal Use or Commercial Use?

Are you unsure if your vehicle should be rated for commercial use?  If so, it is important to contact your broker and find out if you need to change your personal use policy to a commercial one.
Personal automobile policies have specific exclusions for using vehicles for business use and that means that if you are involved in an accident while using your vehicle for business related reasons, your claim may be denied.
What is Considered Commercial Usage?
If you are using your personal vehicle for occasional company errands or client visits, you may simply be able to add a percentage of business use to your existing personal policy. If your business use is occasional and doesn’t include deliveries or carrying business related equipment/products in your vehicle most insurance companies would not consider a commercial policy necessary.
Commercial Use Examples
  • You use your vehicle for transporting people or products for which you are compensated.
  • Towing a trailer as part of your job
  • Your vehicle is outfitted with equipment such as ladders, landscaping machines, snowplows or hydraulic lifts
  • Your employees drive your vehicle for business purposes
  • You use your vehicle to transport materials to a job site
  • You have company logos/advertising on your vehicle
Insurance companies have different rate classes and premiums based on how you use your vehicle commercially.
If you have any questions about how your vehicle should be rated, please give us a call or sent us a note here. We will make sure that you have the coverage you need.