- February 4, 2019
- Posted by: oneplacefinancial
- Category: Auto Insurance
Incidents of road accidents and vehicle damage are alarmingly high in the US. Nearly 37, 133 people were killed in driving incidents in 2017, and many more suffered extreme property and vehicle damage.
It is unsurprising, then, that auto insurance companies have a policy of excluding business driving from personal driving. They’re often excluded form personal packages.
Why Is Business Driving Not Included?
When it comes to issuing an auto insurance policy for personal use, you’re unlikely to find a company that includes business driving in the package. This is because a personal auto insurance policy is designed and priced differently than a business auto insurance policy.
The two have quite a few distinct aspects, and incorporating business driving into personal insurance will only disrupt these. Mixing the two will cause confusion and will result in unfair standards being applied to personal auto insurance.
Another reason why insurance companies tend to keep the two separate is because of the risks associated. If you’re behind the wheel for a long time, you’re more prone to traffic accidents. Your vehicle is more likely to suffer damage if it’s out on the road frequently. If you’re driving for business, you’ve automatically doubled the chances of these happening.
Using your personal vehicle for work-related business means that you’re putting your car at a greater risk, which the insurance agency didn’t agree to. Therefore, trying to use a business driving accident encountered by your personal vehicle will only cause you more trouble.
The insurance company will probably deny the claim due to the change of circumstances. Moreover, they may even revoke your existing personal auto insurance coverage.
When Do You Need New Insurance?
If you find yourself regularly using your personal vehicle for business purposes, it may be time for you to invest in a new insurance plan. For instance, if much of your driving involves travelling between business sites, or transporting employees and clients, then you’re dealing with specific business driving. Similarly, if you use your own car while making sales calls or transporting company products, this too is a non-personal use.
What Kind of Auto Insurance Do You Need?
Now that you’ve established your need for a new auto insurance plan, it’s time to avail the best option. This comes in the form of business auto insurance and is applicable if the vehicle is owned by the company, or if the company uses your personal vehicle for various purposes.
For instance, your company may not have their own designated vehicles for a certain work-related activity. If, in this case, it regularly falls upon you to make the trip in your vehicle, then the company is liable for purchasing commercial auto insurance for your car. This is beneficial for both the company and the employee, and covers the road accidents and vehicle damages that may occur during these driving trips.
Don’t wait for an accident to strike! Get commercial insurance for your vehicle and protect your car!