Many jobs require driving from one location to another, whether it be to deliver goods, attend meetings or perform some other required function. If your employer does not provide you with a company vehicle for these trips, you may decide to drive your own car. However, because you are no longer using your vehicle for personal reasons, you may also wonder if your personal auto insurance policy still applies.
Personal Auto Insurance Exclusions
Although many personal insurance policies will cover your vehicle regardless of whether you are driving it for personal or business purposes, some policies may not. The most common exclusion applies when you are transporting people or goods for payment, such as for a taxi or delivery service. Other policies may exclude other types of business use as well, so be sure to read the policy carefully before you drive.
What if You Aren’t Covered?
If an accident occurs while you are driving your vehicle on company time and you are not covered by any insurance policy, you could be held liable for any injury or damages you caused. This can be costly, especially if someone who was injured tries to sue for punitive damages.
If you find that your personal auto insurance policy is not covering business use of your vehicle, you need to find additional coverage. In some cases, your employer’s auto insurance policy may provide coverage for employees using their own vehicles on the job. However, this is not standard on business auto insurance policies, so be sure to get proof of this coverage before you start driving. If your employer’s policy isn’t covering your vehicle either, you may need to explore other options for personal auto insurance. In some cases, you may even need to invest in a commercial auto insurance policy.
If you are not sure about your coverage needs, or if you would like to explore additional coverage options, contact a qualified insurance agent to discuss your situation in detail.
Content provided by Transformer Marketing.
Sources: http://www.scottsimmonds.com/blog/business-insurance/employee-auto/, http://www.insure.com/articles/businessinsurance/personal-car.html