Personal or Business: What type of auto insurance do I need?   

Have you ever delivered pizza, driven for a rideshare company, or transported goods for a fee? The line between personal auto insurance and commercial auto insurance can sometimes blur. It is important for you to know the difference between coverage on a personal auto policy and a commercial auto policy. Your personal auto carrier could deny your coverage if you were using your vehicle for business purposes.   

Not only could a denied claim be problematic to getting your vehicle fixed, but it could also personally obligate you to pay for damages or injury you might have caused. As a best practice, always let your agent know what you are doing with your vehicle(s) and if you are contemplating a change in usage of your vehicle be sure to call your agent.  

The key to determining if you need commercial auto insurance is whether the vehicle is used for a business-related reason. Below are some scenarios where business auto insurance could make sense for you:  

  • You provide transportation for a fee (rideshare such as Uber or Lyft)  
  • You deliver products for a fee (medical equipment delivery, parts delivery, wholesale distribution)  
  • You rent or lease your vehicle to others for a fee  
  • Your vehicle is equipped with a snowplow and others pay you to clear snow for them  
  • Food delivery (pizza, uber eats, door dash)  

The lines become further blurred when you occasionally or very incidentally use your vehicle for business-related exposure. The best advice is to reach out to your agent to be sure you do not have gaps in your current coverage. As always, at TGIF Solutions, we will complete a free comprehensive review of your insurance.