Do You Use Your Personal Auto For Business

January 27, 2014

There are many people in the San Juan Islands who as part of their job use their personal vehicles on a daily basis. In fact, according to the last numbers put out by the U.S. Census Bureau, there are over 80 million people using their own vehicles for business every year. Safe Harbor Insurance wants to make sure you understand the risks associated with driving your own vehicle as part of your job. Safe Harbor can provide you with options if you drive your vehicle for San Juan Islands business.

Employees who use their own personal vehicle for business often assume they are covered under their employer’s automobile policy. This is a wrong assumption. You are not covered under your employer’s primary automobile insurance while driving your own vehicle on company business. There might be one exception:

Let’s say you use your personal car for business. It is possible your employer is providing some excess coverage for you. In most cases the coverage is for liability only, and often this commercial auto policy doesn’t even apply until the limits on your personal auto policy are exhausted. You should discuss this with your employer and call Safe Harbor Insurance for a review.

If your car becomes a source of revenue you will need to make adjustments to your auto insurance policy. Here are some examples:

  • You charge a fee for driving services
  • Taxi service
  • Delivery
  • If you claim your car as a tax deduction

Some additional considerations to think about:

  • Are you covered for Workers’ Compensation?
  • Do you have company property in your vehicle, if so, who insures that?
  • Do you have property of another third party, if so, who insures that?

If you drive your car as part of your job, chances are you will be charged a higher rate or you may need to secure a commercial auto policy. You should also consider keeping accurate records and contacting a tax professional to help guide you through any tax issues.

Call for a quote at 360-378-2949