Sure, your personal auto, titled in your personal name is just that, personal. You consider it a personal vehicle. You pay taxes on it as a personal vehicle. You use it to pick up the kids, go to the grocery store, travel on vacation and go out dinner on Friday night. But, do you also use it to visit clients or to deliver goods? If you do, you may need to increase your coverage and add a business car policy.
In the event you use your personal vehicle for business, delivering goods for example or transporting a client or employee, or even just driving to a professional appointment, you may not be covered if something happens. Should you and your vehicle be involved in an accident while driving for business purposes, you personal car insurance may not be enough.
If the insurance company holding your personal car policy gets wind of the fact that you were in transit for business purposes other than simply commuting, they may not cover the damages or liability. They will be looking to see if you have told them it is for business use as well as personal.
If the vehicle is titled in your personal name and there is a lawsuit your business entity can still get pulled in. And it will, when a suit occurs EVERYONE gets sued.
For what it costs, it’s worth protecting yourself AND your business. You don’t want yourself or your business to be on the hook in the event you cause damage to someone’s car in an accident or worse, you cause personal injury or death to someone.
Even if you think you’re covered, it’s worth reviewing just to be safe. As a quick check, if you’re a business owner, an independent consultant or a contractor, can you answer “yes” to any of these questions?
1. Do you deliver goods, food, supplies, etc. for your business using your personal vehicle?
2. Do you transport clients, employees or other business associates in your vehicle?
3. Do you tow a trailer with supplies (as in the case of a contractor) to a job, or pack the vehicle with those supplies?
4. Do you meet with business contacts outside of your office on a regular basis and travel to those appointments using your personal vehicle?
5. Do maintain what could be considered a “fleet” of vehicles?
6. Do any of your employees utilize your personal vehicle for company business or appointments?
7. Do you rent or lease a vehicle for business use?
If you answered “yes” to any of the above questions, you may need to add a business auto policy to your personal vehicle insurance.