FAQ - Personal Auto Insurance May Not  Cover Business Us

Most personal car insurance policies do not cover business driving. The most common reasons include:

  • Risk of Business Use verses Personal Use – Since you spend more time driving for your business, you have a greater likelihood of accidents and vehicle damage.
  • Personal Auto Policies Terms & Coverages - Your contract with your insurance provider extends to your personal vehicle for private use and your policy was priced and billed accordingly.

Using a personal vehicle for your business adds risk – risk that your insurance company didn’t agree to when they endorsed your policy. It is not uncommon for insurance companies to deny a claim if the accident occurred while using the vehicle for business.

If you frequently use your personal vehicle for your business, you may want to consider purchasing a separate business auto policy.

How Do I Know if I Need Business Auto Insurance?

Association Management Companies require Business Auto Insurance. On rare occasions, an exception might be allowed depending on the type of business and individual situation. To be considered for this exception, you will need to have business use coverage on your personal auto policy.

The best way to determine if you qualify for an exception is to request a Letter of Non-Exclusion for Business Use from your Automobile Agent.  By informing your insurance agent that you use your car for business, they can verify or add a designation to your policy to cover this type of driving.

What Kind of Business Auto Insurance Do I Need?

If you often drive your own vehicle or allow employees to travel between work sites, to transport people or products, or to make sales, your agent will most like suggest Commercial Auto Insurance or Hired and Non-Owned Auto Insurance.

What is a Letter of Non-Exclusion?

The letter of non-exclusion states that your policy does not have any limits or exclusions and that you are cleared to drive both personal and business use.

What information does my Agent Need to Provide?

Please include a policy endorsement to show Business Auto Coverage. If there is no endorsement on the policy, then please supply a letter on Agency Letterhead stating there are NO Exclusions in the Automobile Policy (including the policy number and carrier) related to driving personal insured vehicles for business use.

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