Can You Insure Business Vehicles Under Your Personal Auto Policy?

As more and more people are increasingly running their own businesses, what does that mean for your vehicles and auto insurance? Depending on the type of business you own, who operates the vehicles, and what they’re specifically 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 are still the sole driver 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.

Keep in mind that the weight of the vehicle also plays into the equation, for example, 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 to hazardous materials, 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.

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