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Business Vehicles and Your Personal Auto Policy

By July 18, 2023No Comments

If you run your own business, you may be able to keep your vehicles insured under your personal auto policy. But that all depends on the type of business, who’s driving the vehicle, and how they’re used. Below, Central Insurance breaks it all down for you.


Owning and running your own business these days has become increasingly popular. After all, who doesn’t want to be their own boss? But what does that mean for businesses that use their personal vehicle for company business?

Well, according to Central experts, depending on the type of business, who drives the vehicles, and how they’re used, you may be able to keep your vehicles insured under your personal auto policy.

What types of businesses are covered on a personal auto policy?

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

  • Real estate agents
  • Consultants
  • Lawyers
  • Sales representatives
  • Doctors


Who can operate the vehicle under a personal auto policy?

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

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

How does vehicle use affect my personal auto policy?

If you are using your vehicle for any type of delivery, like pizza, postal, floral, hazardous materials, etc., you need to insure it commercially. Also, any kind 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. Many auto carriers have developed personal auto policy endorsements specifically for these ridesharing activities that provide coverage for these situations. Consult with your auto insurer to make sure you still have coverage.  

What if my company provides a vehicle for my use?

Some companies provide employees 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 personal auto policy, which can easily be done with an add-on endorsement.

The value of Central’s comprehensive auto protection

From basic protection to the superior coverage of our Signature Auto-Policy, Central offers a wide variety of auto insurance coverages to fit your personal needs. Every Central personal auto policy includes 24/7 access to our Roadside Assistance program and we offer a number of discounts and credits to help you save money on your insurance coverage. Check with your independent agent to find the best-suited policy for your specific needs and situation.

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.


Source: Central Insurance