Whether you are commuting to and from the office, or drive around during your work day, it is important to know what is covered under your personal auto insurance policy. If you are simply using your vehicle to get you to and from work or a meeting—than you should still be protected under your personal car insurance policy, as long as you have disclosed this information to your insurance company. Be sure to also let your broker know if your car use ever changes from personal to business, and if the length of your daily commute changes. Sometimes it can be hard to define personal use versus commercial, so this article seeks to highlight the differences between the two.
What business uses are not included under a personal auto insurance policy?
- Making deliveries that are part of a business such as take-out food orders, flowers, merchandise
- Carrying passengers as part of a ridesharing service (including Uber and Lyft)
- Using your personal vehicle to transport volunteers, children, or seniors in a non-profit organization
- Renting your vehicle out to other people
- Using your personal vehicle to drive between multiple work sites
- Driving to various places to meet with clients on a regular basis
If you are using your vehicle regularly for any of the above, then you will require commercial vehicle insurance. If you do happen to get into a collision while using your personal car insurance for business, you will not be covered for the claim and will have to pay the damages. You could also risk having your policy cancelled for failing to disclose a material change. While the line may sometimes be blurred between what activities are personal versus business-related, it is essential that this distinction is made. It’s better to be safe than sorry, so speak with your broker to ensure all information is adequately disclosed to your insurance company.
If you are a small business owner, using your personal vehicle for business with commercial auto coverage might be beneficial to you. By tracking your business-related vehicle activities in a logbook, you can deduct a portion of your expenses from your taxes. A commercial vehicle policy covers you for business purposes even if the car is also used for personal activities, which could save you money compared to purchasing a separate company car.
Knowing when to update your coverage and when to purchase a commercial policy is essential. If you aren’t sure whether or not you are covered, it is always best to talk to your broker. If you are considering purchasing commercial auto insurance or have more questions, talk to one of the experts at Fuse Insurance.
Fuse Insurance Ltd. is the evolution of the commercial insurance brokerage, and the first of its kind in Western Canada. Backed by policies from a selection of A-rated insurers, Fuse Insurance can provide coverage for businesses large and small from almost any industry. For further information or to get an online quote now, click here or call us at 1-866-387-FUSE (3873) for more details.