When you work for a company, it might require you to have your own vehicle, but this can potentially create problems with your auto insurance. The reason your employer will ask you is for liability purposes; they want to make sure you are protected if you use your car. With that being said, your auto insurance is for your personal vehicle, therefore, the insurance you sign up for is for personal use only. Insurance companies insure your vehicle for personal use and that is why they usually ask you what you use your car for, and how often you drive. This helps the insurance figure out what your premium will be, but what happens when you use your vehicle for work? Obviously, your personal auto insurance won’t cut it. Your vehicle insurance is designed to protect you for what you use your vehicle for.
Personal Vehicle For Business Use
Although working is your personal choice, this is not to be mistaken with business use. Most insurance companies exclude you from using your auto insurance for anything business-related. This means if you use your vehicle while you are working, then chances are, you will not be covered. Personal auto insurance will guarantee exclude you from business use and for that reason, you will want to discuss that with your auto insurance provider business insurance.
There are plenty of auto insurance for business use. Depending on the type of car you drive and for what reason you drive it. The reason for commercial insurance and why it is required is because you are exposed to more liability. You drive clients around in your car for your job, you are exposed to potentially having to address their injuries if you are involved in an accident. If you transport products, you will be liable if anything gets damaged should you get into an accident. Your auto insurance is designed to fit what you do, and personal insurance might not cover everything.
This is when business or commercial insurance comes in to protect you.
Commercial insurance usually has higher limits for liability. It is specifically designed for what you need and for what type of business you do. Someone who delivers pizza has less liability versus someone who uses their car for rideshare, and commercial is custom to where these individuals only get what they need. Make sure you discuss with your employer what they recommend for liability limits to make it custom to what you need. If you have your own business, make sure you calculate your risk.
Rideshare
When you drive for rideshare (most popular Uber or Lyft) they require you to have proof of auto insurance. You can work for these companies as they only require proof that you have any type of auto insurance. Most of these companies have their own liability insurance that protects you and your passengers when driving them around. This is still considered business use and your auto insurance will require you to carry insurance for this. As we get more advanced as a society, rideshare insurance will be available by most providers. Depending on the company, they will either require you to change completely to commercial insurance, or they will add rideshare to your personal insurance.
Final Thoughts
You do not want to be in a situation that you get in an accident while working, and not have the proper coverage to protect you. Make sure you disclose everything you intend to use your vehicle for so that you can get the exact coverage you need. Discuss with your employer if they have any insurance that can protect you.