Does Your Home Business Need Commercial Car Insurance?

Is Your Personal Auto Insurance Good Enough for a Home Business?

Personal vs. Commercial Car Insurance for Home Businesses

Personal vs. Commercial Car Insurance for Home Businesses

If your home business does not rely upon any driving, and you only use your car for personal use, you are obviously fine with personal car insurance. However, many home businesses do involve some use of a car, truck, or van. Home business owners may need to drive to meet clients, attend meetings, or transport inventory and supplies. Some of these businesses owners even lend their personal vehicle to employees. In this case, you might need to take a look at your auto policy to be sure it is still good enough to cover your businesses needs.

Do You Need Commercial Car Insurance for a Home Business?

BestRatesUS.com is a website that specializes in consumer tips for auto policies.  According to information found on this site, many people are not covered will enough when they simply buy basic policies. Think about how you use your own vehicle for business:

  • Do you drive more miles than you originally specified in your policy?
  • Do you keep valuable inventory, equipment, and supplies in your personal vehicle when you use it for work?
  • Do you let other people use your personal car for work?
  • Would a liability claim exceed the limits you have on your required liability insurance policy, and put you out of business?

If so, you may be risking a lot by not speaking with a good agent. He or she may suggest one of the following options:

  • Add extra coverage to your existing coverage.
  • Buy a commercial car insurance policy.

The right answer might depend upon your insurers, how you use your car for business, and what state you live in. In any case, a local and experienced agent should be able to help you. A local agent can help you go through several typical business scenarios to come up with the most affordable and sensible solution to make sure you cover your car, truck, or van appropriately. In some cases, your personal injury policy might be good enough, but it might be more prudent to add extra insurance.

This High Cost of Inadequate Business Car Insurance

Adding extra coverage should not cost that much. However, the lack of proper coverage could risk your entire business, so it is absolutely not a frugal choice. If you have joined the group of thousands of people who live and work out of an RV, you could even have more to lose.

 

 

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