Does Your Personal Auto Insurance Cover Business Use?

Are you a business owner wondering if your personal auto insurance covers the business use of your car? You may be surprised to learn that your personal auto insurance may not cover you in the event of a business-related accident. Hence, business owners need to understand the differences between commercial and personal auto insurance and when to acquire the right coverage.

What Does Commercial Auto Insurance Cover Exactly?

Commercial auto insurance is designed to protect businesses and their employees from costly accidents and liabilities associated with business-owned vehicles. It covers damages and losses to the business, its employees, and other drivers if an accident occurs while operating a business-owned vehicle. The coverage usually includes:

• Liability coverage - Pays for damages and losses that your business may be legally responsible for, such as bodily injury and property damage.
• Medical payments coverage – Covers medical expenses for injuries sustained by the driver or passengers of the business-owned vehicle.
• Uninsured/underinsured motorist coverage - Pays for damages and losses caused by a driver who does not have adequate insurance coverage.
• Physical damage coverage – Covers expenses related to damages and losses to the business-owned vehicle due to a collision, theft, fire, natural disaster, or vandalism.

Commercial auto insurance is a must for businesses that own or lease vehicles. Without it, you may be held financially responsible for any damages or losses that occur in an accident.

What's Not Covered with Commercial Auto Insurance?

Although commercial auto insurance generally covers the aforementioned factors, it does not cover any damages or losses to a business-owned vehicle that is used for personal use. For instance, if an employee drives a business-owned vehicle to a vacation destination, any damages or losses incurred during the trip would not be covered by the business’ commercial auto insurance policy.

Additionally, commercial auto insurance does not typically cover any damage caused by reckless driving, such as driving under the influence, speeding, or recklessly endangering the safety of others.

Does My Personal Auto Insurance Cover Business Use?

The answer to this question depends on the specific details of your personal auto insurance policy. Many personal auto insurance policies do not cover the business use of the insured vehicle. This means that if an accident occurs while the vehicle is being used for business purposes, your auto insurance may not cover any damages or losses that occur.

If you are unsure of whether your auto insurance policy covers business use, you should contact your insurance provider to clarify. It is important to understand the details of your policy and what is and is not covered.

Additionally, you should also consider purchasing a commercial auto insurance policy if you plan on regularly using your personal vehicle for business purposes. Commercial auto insurance is designed to protect your business and its employees from costly damages and liabilities that can occur during business-related activities.

Learn Everything About Your Auto Insurance Policy at Corbett Insurance

At Corbett Insurance, we understand the importance of protecting your business from costly damages and liabilities. That’s why we provide comprehensive commercial auto insurance policies tailored to your business’s needs. Contact us today to learn more about how we can help protect your business.