Driving a Personal Vehicle for Business Use? Insurance Concerns You Need to Know

Not all auto insurance is the same, and it’s important to understand the differences that could affect your coverage. One of the most common circumstances in which coverage questions arise is when you operate a personal vehicle for business use. What some people do not realize is that a personal auto insurance policy typically won’t cover damage to your car if you’re using it for business purposes.

Even if your personal auto policy has “business-use” coverage, you may find yourself at a loss in the event of an accident, especially if your liability limits are not high enough to cover the damage. Make sure you’re protected; be sure to review the following questions with your independent insurance agent:

• How do you define “commercial use?” Some insurers may simply define it as transporting goods for compensation or a fee, which could include services like:

                    o    Pizza and newspaper delivery

 

                    o    Catering

 

                    o    Door-to-door consulting services

 

                    o    Landscaping or snowplowing services

 

                    o    Day care/church van services
 

Even real estate agents may qualify. Fall in to one of these categories? Talk to your agent about a commercial vehicle insurance policy.

 

Is commercial auto insurance right for you? Here are some questions to ask to help you determine the answer:

•        What are my liability limits? In general, a commercial auto policy can offer higher liability limits. Larger vehicles, like delivery vans, can cause more damage than passenger cars, making higher liability limits beneficial in the event of an accident.

•        Does my personal policy cover me for issues specific to my business? For example, if you have a trailer that damages another vehicle while on a job, will you have coverage? A personal liability policy may not cover the repairs in this case, but a commercial policy will.

•        Do I have employees who drive my vehicles? In general, if other people drive your vehicles for work, you need a commercial auto policy.

You also a need commercial auto policy if your vehicle hauls tools or equipment weighing more than 500 pounds, makes deliveries, or requires filings for interstate for for-hire trucking businesses.

 

At Hunkins & Eaton Insurance Agency, our local, independent agents can help you better understand your coverage needs and custom design coverage accordingly. To learn more about securing commercial auto insurance in NH and to get a free quote, call us today at 800-427-3975 or click here.

To learn more about the differences between personal and commercial auto insurance policies, visit www.progressivecommercial.com. For additional insurance information, safety tips, and other useful resources, please read our other blog posts and connect with us on Facebook, Twitter  and Google+.