Do You Need a Separate Insurance Policy if Your Vehicle is Used for Work?

Do You Need Separate Policies for the Vehicles in Your Driveway?

If you have a car in your driveway that is for personal use and another vehicle that you use for business, you may very well need two separate insurance policies. In order to make sure that both vehicles are properly and adequately covered, both a personal policy and a business policy may be required. This is especially true if your second vehicle is a truck used for local or long hauls. Here are some things that you need to know:

1.The Language of Your PAP

The first thing that you need to do is to read the language of your personal auto policy, or PAP. Your personal auto policy contract will lay out exactly what is and isn’t covered when it comes to personal use. For instance, if your second vehicle is an 18-wheeler, your personal policy will not cover it. On the other hand, if your second vehicle is a car and you use it as part of your part-time Mary Kay business, your personal policy will be sufficient.

2.The Type of Truck Matters

Almost every PAP restricts business use of autos to passenger vehicles, small vans and pickup trucks. If your second car is a box truck, a shuttle bus, a tractor trailer or another type of commercial vehicle, you’ll need to purchase a commercial driver’s policy to provide coverage for that auto. If your second vehicle is a pickup truck or small van and you use it for business less than 50 percent of the time, your personal auto policy is normally sufficient.

3.Company Coverage

If you drive for a company and the vehicle used was purchased personally, you should still be insured under the company’s policy. Speak with your employer and find out if you are covered under the company’s auto insurance policy or if you are required to provide your own policy; never assume that you are covered. You will also need to clarify the coverage for any vehicles that you use on a daily basis but leave at the office. If the company car is also “available for regular use,” you may need additional coverage that isn’t provided under your PAP.

4.Getting the Most Affordable Policy

If you determine that you need a commercial auto policy for the business vehicle that you own, it’s important to get the best policy for your money. Spend a few hours online gathering quotes from several different companies, or contact your PAP agent to find out if you can get a discount by insuring your business vehicle with the same company. By maintaining a safe driving record, being careful of who, if anyone, you hire to drive for you, and by raising your deductibles to the highest, affordable amount, you will get the best deal for your new policy.

If your second vehicle is used primarily for business, chances are high that you will need to purchase a second insurance policy. It’s important that you are properly covered in the event of an auto accident. Failing to purchase the right kind of insurance can mean financial disaster if you are involved in a collision.