Fender benders are never something you expect to happen, and it seems like they always like to occur at the most inconvenient times. Typically, once you get over the initial shock, the aftermath isn’t that big of a deal. File an insurance claim, get your bumper repaired, and you’re good to go. However, if you were using your car for business purposes, then you may be in for a big surprise when your personal auto insurance policy refuses to cover the damages since you were using the car for your business.
How can you avoid this scenario? Start by understanding the difference between personal and commercial car insurance, and know when it’s time to make the upgrade to a commercial policy. Here are a few reasons why your personal auto insurance may not cover business use and what you can do about it.
Car Insurance Companies Require Additional Coverage for Business Purposes
If you’re driving for business purposes, you need to make sure you’re properly insured. Personal auto insurance policies typically don’t cover business driving, which means you could be left without coverage if you’re involved in an accident while on the job.
That’s why most insurance companies offer commercial auto insurance policies designed specifically for business drivers. These policies typically offer higher levels of coverage than personal policies, and they may also include additional features such as roadside assistance and rental car reimbursement.
As a result, it’s important to speak with your insurance agent when you shop for car insurance to make sure you have the right policy in place for your needs.
While it may cost more to insure your vehicle for business purposes, it’s vital to make sure that you’re properly protected in the event of an accident. Without proper coverage, you could be held liable for any damages or injuries that occur, which could quickly bankrupt you and your business.
Employees Driving Their Personal Car for Your Business Needs: Non-Owned Auto Insurance
If you are a business owner and you require your employees to use their personal vehicles on the job, it is important to make sure that your company has the appropriate insurance coverage in place.
Non-Owned Auto Insurance will protect your business in the event that an employee is involved in an accident in their own vehicle while working for you. This type of insurance will cover damages to the vehicle, as well as any injuries that may occur.
It is also important to make sure that your employees are aware of this coverage and know how to file a claim should the need arise. By taking these precautions, you can protect your business and your employees in the event of an accident.
Employees Driving Company Cars for Your Business Needs: Commercial Car Insurance
Commercial car insurance is a type of insurance coverage that helps to protect businesses and their employees who use company vehicles on the job. This includes protection in the event of an accident, as well as protection from theft, fire, and other damage.
Commercial car insurance can also provide coverage for business-related liability, such as if an employee is involved in an accident while driving a company car.
In most cases, commercial car insurance can help to cover the costs of repairs or replacement vehicles. This is why commercial insurance is an important type of coverage for any business that relies on employees using their personal vehicles for business purposes.
Employee Driving A Company Car for Personal Needs: Personally Liable
If you are an employee of a company and you are involved in a car accident while driving a company car for personal needs, you may be held personally liable for damages, especially if it is against company policy and since commercial car insurance typically won’t cover personal use.
While your employer may provide some level of insurance coverage, it is important to make sure that you are fully protected in case of an accident. You can talk to your insurance agent about adding additional coverage to your personal insurance policy that will include coverage for any accident that occurs while using your vehicle for your job.
If you are found to be at fault, you could be responsible for paying for the repairs to the other vehicle, as well as any medical bills incurred by the other driver. You could also be sued by the other driver and be required to pay damages.
You Could Lose Your Coverage Entirely if You Don’t Disclose Your Business Use to Your Insurer
If you use your personal vehicle for business purposes, such as DoorDash or Instacart, or driving to meet clients, and you do not disclose this to your insurance company, you could lose your coverage entirely.
This is because most personal auto insurance policies exclude business use. As such, if you are involved in an accident while using your personal vehicle for business purposes, your insurance company may deny your claim.
Even more than denying your claim, your insurance company may cancel your policy entirely if they discover that you have been using your personal vehicle for business purposes. Because of this, it is important to check with your insurance agent before using your personal vehicle for business purposes. Doing so could save you a lot of money in the long run.
There are many ways that a car can be used for business purposes, but it’s important to have the right insurance in place to protect yourself financially if an accident occurs—personal auto insurance won’t cut it. Make sure you’re adequately covered by getting a commercial auto insurance policy that specifically covers business use. It may cost a little bit more upfront, but it could save you a lot of money (and headaches) down the road if you get into an accident while working.
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