Do You Need Commercial Auto Insurance If You Use Personal Vehicles for Business?

Personal vehicles often serve double duty, moving between weekend errands and weekday business tasks. Personal auto policies are generally designed to cover private travel, not work-related driving. In some situations, that difference can affect how coverage is applied and what kind of policy may be appropriate.

When Business Use Could Trigger the Need for Commercial Coverage

The decision to consider commercial auto insurance depends on various factors, including how frequently and for what purposes the vehicle is used in connection with business tasks.

For example, a real estate agent who drives to property showings every day, or a contractor who transports equipment to job sites, may fall into a different category than someone who occasionally drops off documents. Regular business driving, especially involving customers, goods or tools, can trigger the need for commercial auto insurance.

Some business owners and entrepreneurs may not immediately recognize that their driving qualifies as commercial.

Using a personal vehicle to drop off catering orders, transport clients or travel to trade shows are examples of use that may merit commercial consideration. Even freelance workers who shuttle between gigs could be operating in a business capacity.

Learn More

Every situation is unique, and distinguishing between personal and commercial use can be an important step toward selecting the right coverage.

To speak with someone about your specific needs, contact Lakewood Financial Services, Inc today.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.