Whenever employees are driving for their jobs (excluding commuting), the organization can and will be held liable for what happens to them and others if they're in an accident. Let Me Count the Life Insurance. Personal use of a car includes driving to and from work, and some business use. Business car insurance is best for those who use the same car for business and personal use, while commercial car insurance is more suited to vehicles involved in heavy-duty work. If you unexpectedly find that you need to use your personal vehicle for business for only a single instance, then you probably don’t need to worry about coverage. There are lots of exceptions and "maybes." Drafting a vehicle policy is the best way to set and communicate the rules regarding employees' use of vehicles. However, there are three common exceptions to this general rule. How do you use your vehicle? After all, both business vehicle insurance and personal vehicle insurance share some similar benefits – legal liability cover and options for a rental car to name two. The simplest way of coverage for this exposure is endorsing the … Anyone whose job demands they drive their own car for the purposes of their work will need to pay for business car insurance. This can cause the need for addition servicing such as tire replacements, oil changing, tune-ups, etc. The interest of the named insured should always be protected. Also, some automobile insurance policies limit coverage only to authorized use of the vehicle. The current standard for mileage reimbursement is between 50.5 cents to 58.5 cents-per-mile. google_ad_type = "text_image"; By using this form you agree with the storage and handling of your data by this website. You can deduct the full amount for parking fees and any supplementary business insurance for your vehicle. If I get into an accident while working and, this accident is my fault, will my premium for my personal insurance go up or is it less relevant because they don’t cover the work use? The answer: The Personal Auto Policy has an exclusion that states that there is no coverage for the use on a vehicle furnished or available for your regular use. If any aspect of your job requires you to drive (and couldn’t be done by someone who takes the bus to work, for example), then you’re probably using your vehicle to do your … Your personal insurance with an added exception may be enough to cover light use of your personal vehicle for business purposes, however, never assume you are covered without contacting your insurance company. This will help avoid the headache of denied claims in case of an accident and large citations for insufficient insurance coverage if pulled over by the cops. Classes of use available on insurance policies include social only, social plus commuting and business use. This applies to using the car like a taxi or delivery van, not a simple business errand. In most cases, that is easy and doesn’t require anything other than gas. Required fields are marked *. If you answered “yes” to this question, then you may want to check your insurance coverage to see if you’re protected from possible claims. If you drive any of the following, then you're (often) covered: Though there are the above exceptions, there are exceptions to the exceptions that could mean you're back at Square 1 (uncovered). Be sure to designate that the vehicle is used for business on your personal policy. Personal use of a company vehicle should be restricted to the employee assigned to the vehicle, and non-employees, such as spouses or children, should not be permitted to operate the vehicle. This could possibly include a gross vehicle weight (GVW) limitation or a clause that restricts coverage to owned pickups or vans only. For example, a real estate agent that drives to and from listings would be covered under their personal policy. You might need additional coverage, or to extend your personal auto policy, and not know it. Many of us work for a company or are small business owners that require we go above and beyond the normal show up, work, and go home routine. That's where your independent insurance agent comes in  - to close potentially devastating gaps in your personal auto policy. Thus, the employee is left without protection under either policy. Employees using personal vehicles for business purposes run the risk of being faced with no coverage in the event of an accident.It is important for the employee and employer to understand the difference between personal and business use of the vehicle, and what steps each should take to ensure they are properly protected. google_ad_width = 300; Family members occasionally use my business vehicle for personal needs. Even if your company doesn’t require insurance for you to carry the goods, it may be in your best interest to guard against damage or loss. Here are are a few suggestions for drafting vehicle policies that meet your needs: Be restrictive, but practical, about use of your vehicles. Driving for Work: Own Vehicles 1 Introduction Driving is the most dangerous work activity that most people do, and it contributes to far more work-related accidental deaths and serious injuries than all other work activities. Some personal auto policies may be more restrictive toward pickups or vans. And how often it ’ s exposure to loss this could possibly include a gross vehicle weight ( GVW limitation... Policy cover you for accidents during business use of vehicles personal policy itemized on... Possibly include a gross vehicle weight ( GVW ) limitation or a clause that restricts to... Connection with your employer for any vehicle owned by a business and tear caused your! 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