Business Vehicles and Your Personal Auto Policy

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Personal business car

It has become more and more popular that people are owning and running their own business these days. I mean, who doesn’t want to be their own boss? Though, what does that mean for your vehicles and auto insurance? Depending on the type of business, who drives the vehicles, and what they’re used for, you may be able to keep your vehicles insured under your personal auto policy.

The types of businesses that are typically considered acceptable when keeping your business vehicle on your personal auto policy are:

  • Real Estate Agents
  • Consultants
  • Lawyers
  • Sales Representatives
  • Doctors

Most any business where you (or family members in your household) are still the sole operator of the vehicle, and you are not transporting any goods for delivery, is considered an acceptable exposure for your personal auto policy. If you have employees that regularly operate your vehicles, then that is more suited for a commercial policy.

The weight of the vehicle also plays into the equation – vehicles weighing over 10,000 pounds gross vehicle weight do not qualify for a personal auto policy.

If you are using your vehicle for any type of delivery, like pizza, postal, floral, hazardous materials, etc., it would need to be insured commercially. Also, any type of transportation for hire, such as a taxi, daycare, elderly care, etc., would need commercial insurance. An exception to the transportation for hire rule might exist when you are working for a transportation network company, such as Uber or Lyft. You should consult with your auto insurers to make sure you still have coverage.  Many auto carriers have developed personal auto policy endorsements specifically for these ridesharing activities that clearly provide coverage for these type of situations.

Finally, many people are provided with a company vehicle to drive for business and personal use. In this case, you typically have coverage under the company’s commercial policy. Depending on your employer’s requirements, it is never a bad idea to cover yourself on your own personal auto policy, as well, which can be done easily with an add-on endorsement.

Check with your independent agent to find the best-suited policy for your needs.

Click here to learn more about Insurance 101: Personal Auto Coverages.

The information above is of a general nature and your policy and coverages provided may differ from the examples provided. Please read your policy in its entirety to determine your actual coverage available.

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Copyright © 2019 Central Mutual Insurance Company. All rights reserved.

Commerical Auto | State Farm

Puffy Lux
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Request a Commercial Auto Quote Today

You want to have confidence in your commercial auto insurance. State Farm Mutual Automobile Insurance Company makes it easy with auto insurance coverage you need for your business vehicles, and you can count on us to be there for you during a claim.

Big Protection for Your Business Autos

Whether you use your own car or a fleet of pickups, box trucks and even trailers to get the job done, we offer the protection — liability, personal injury/medical, comprehensive, and collision coverage and more — to keep your business moving forward. Plus, if your employees use their own vehicles to perform deliveries, make sales visits, or run errands for your business, you could be liable for any accidents they cause.

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We have the business auto insurance to help meet your needs. Your State Farm agent can help you determine what deductible amounts and coverage limits best fit your situation and provide business auto insurance quotes.

Business Auto Insurance Coverage Options

  • Bodily Injury Liability Coverage: Helps pay damages due to bodily injury to others for which you are responsible. If you are sued, it also helps pay your defense and court costs.
  • Property Damage Liability Coverage: Helps pay damages due to property damage to others for which you are responsible. If you are sued, it also helps pay your defense and court costs.
  • Personal Injury/Medical Payments Coverage: Helps pay reasonable and necessary medical and funeral expenses for covered persons.
  • Collision Coverage: Helps pay for a covered auto that is damaged by collision with another object. Coverage is subject to a deductible.
  • Comprehensive Coverage: Helps pay for loss of or damage to an insured vehicle, not caused by a collision or vehicle rollover. Coverage may be subject to a deductible.
  • Uninsured/Underinsured Motorists Coverage: Helps pay for injuries, and in some circumstances property damage, when you are involved in an accident with another person who is uninsured or does not have sufficient liability insurance. You’d be surprised how many people only carry minimum limits. Would you like to have the same coverage for yourself that you are providing the other person?
  • How much liability coverage do you need? No one can predict exactly how much you would have to pay if you or an employee were to cause an accident. Only you can decide how much protection you need so ask yourself how you would pay for any damages exceeding your coverage limits. The higher the limits on your commercial auto insurance, the more likely your policy will be able to pay all of the damages.
  • What amount of a covered loss are you willing to pay? A deductible is the portion of a covered loss that is your responsibility. For example, if you had a $500 deductible, you would need to pay $500 of the covered loss. Deductibles apply to both Collision and Comprehensive coverages.

Employers Non-Owned Car Liability Coverage (ENOL)

A State Farm Auto ENOL commercial auto insurance policy protects you when your employees drive their own vehicles for business purposes. If your employees even occasionally use their own cars for your business, don’t be driven to financial loss. Protect your business with this competitive-priced coverage.

 Talk to your State Farm® agent about a commercial auto insurance quote.

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