Difference Between Business Use Or Personal Use Of Car, And How Does It Affect My Insurance?

Difference Between Business Use Or Personal Use Of Car, And How Does It Affect My Insurance

If you plan to use your vehicle for business, you need to let your car insurance company know right away. If you are in an accident and you do not have business insurance on your vehicle, you may find yourself on the hook for the cost of the accident and your claim denied from your insurance company.

There is a difference between commercial or business insurance and insurance for personal use and there is a difference in the cost of that insurance.

Commercial or business insurance needs to be applied to any vehicle that you may drive in the course of conducting business. This means that if you use your car for any portion of either your home business or is part of a company that you own, you need to carry commercial insurance on it.

Vehicles that are used in the course of a day for business related activities are more expensive to insure because they are a higher risk. Any vehicle that is on the road is a potential accident. Likewise, you are adding a lot more miles on the vehicle than just driving back and forth to work.

Personal use is the insurance that most people carry on their vehicles and that is for the everyday driving. This also includes driving back and forth to work.

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Another category of business drivers are the professionals such as doctors, home health care professionals and some lawyers. These are people who need their vehicle to travel to different business locations on a daily basis. These types of policies take into consideration the additional miles and risks like the business and commercial insurance policies do.

Your personal car insurance does not cover your vehicle for business use and should you be involved in an accident you stand the risk of losing your business to a lawsuit.

If you use your vehicle in any way for your business, you need to talk to your insurance agent to get a quote for commercial or business insurance. By comparing auto insurance quotes, you can get the best price for you and your business.

Additionally, talk to your accountant because you may be able to itemize the cost of the insurance.

It is always a good idea to compare auto insurance quotes to get the best deal and by using the internet, auto insurance comparison is fast and easy. Your auto insurance comparison should be done with several companies, including the one you are currently using.