If you use your personal vehicle for work, you take on more risk – risk that your insurance company didn't agree to cover when it wrote your policy. As a result, many insurance companies can deny a claim if the accident occurred while using the vehicle for business. Some insurers might even drop you as a customer.
- It's riskier than personal driving. If you spend a lot of time behind the wheel for work, you have a greater risk of accidents and vehicle damage.
- It might violate the terms of your personal auto policy. Your contract with your insurance provider covers your car for private use and your policy was priced accordingly.
Your personal auto policy can cover your vehicle for some business driving, such as a quick commute to meet a client. To be on the safe side, though, consider informing your insurance company that you use your car for this purpose. Your insurer may add a designation to your policy to address this type of driving.
However, if you often drive your own vehicle to travel between work sites, to transport people or products, or to make sales, you might need some type of car insurance for business use.
For more information, check out our Business Insurance page