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There are a lot of times where you may be using your vehicle for work but really don’t think you are. Is stopping by a customer on the way to work business? Maybe you use your vehicle for sales calls, but also personal use. Your truck is registered to your construction company and you park it in your driveway when not in use, but sometimes help a friend move. You slap a Domino’s sign on it a few hours a day, but other wise use your car for school and fun. When do you need extra insurance?
The most obvious indicator that your car is a business vehicle is the registration. If you are leasing (or own) in the company’s name, you very likely need a commercial auto policy. Just using it to driver to and from work, with an occasional delivery or client visit, probably just requires a personal policy. If it is dual-use – for both business and personal use – you should keep trip and mileage records. If your business use is over 50 percent, you should look into a commercial policy or at least an endorsement on your personal insurance.
Making deliveries with your vehicle as a primary job is another issue. If you use your car for a primary delivery vehicle, you will likely need to obtain a commercial policy. If it is a delivery-heavy business, like a pizza place, the shop may have a liability policy that covers its drivers. Of course, that doesn’t cover your vehicle. There are commercial policies for delivery drivers. If you are using your car and getting reimbursed by your company for upkeep and mileage, how does that impact your insurance responsibility?
Travelling on company business – to a convention, business meeting, even a company-sponsored retreat – could be another area of contention with your insurance company. Say you get into an accident between the convention hall and your hotel room. Does the company bear the liability or do you? What if you dropped by the local sports bar in between to catch the last part of the game? Then what?
If you are an Uber or Lyft driver you need additional insurance. No need to go any further.
Do yourself a favor and check with your insurance professional. What is business and what is personal use can sometimes be a fine line. Cross that line and make sure you are covered every time you get in your car — business or pleasure.