USING YOUR PERSONAL VEHICLE FOR WORK

There are all kinds of scenarios in which you might use your vehicle for work.  Maybe you drive to sales calls in a non-company car. Are you making extra money delivering pizzas or something like that? You are probably using you r own vehicle. Does the boss periodically ask you to run a quick errand for the company? There is probably no motor pool for you to check out a company vehicle to use. Most people use their personal vehicle at least some time for company business. The question is whether you are covered under your own insurance policy.

The most obvious indicator that you are driving a business car is the registration. If you are leasing (or own) in the company’s name, you very likely need a commercial auto policy. Just using it to driver to and from work, with an occasional delivery or client visit, probably just requires a personal policy. If it is dual-use – for both business and personal use – you should keep trip and mileage records. If your business use is over 50 percent, you should look into a commercial policy or at least an endorsement on your personal insurance.

Making deliveries with your vehicle as a primary job is another issue. If you use your car for a primary delivery vehicle, you will likely need to obtain a commercial policy. If it is a delivery-heavy business, like a pizza place, the shop may have a liability policy that covers its drivers. Of course, that doesn’t cover your vehicle. There are commercial policies for delivery drivers. If you are using your car and getting reimbursed by your company for upkeep and mileage, how does that impact your insurance responsibility?

Travelling on company business – to a convention, business meeting, even a company-sponsored retreat – could be another area of contention with your insurance company.  Say you get into an accident between the convention hall and your hotel room. Does the company bear the liability or do you? What if you dropped by the local sports bar in between to catch the last part of the game? Then what?

If you are an Uber or Lyft, driver you need additional insurance. No need to go any further.

The point here is for you to make sure you have coverage. Using your personal car for business sometimes occupies a gray area.  It is best to talk to your insurance professional and let them know where you stand. You definitely don’t want to be unpleasantly surprised when the coverage could have been available.