There are many unique ways to operate a business, and in a cosmopolitan environment like Toronto, many of us spend hours in our personal vehicles. The question is, can a private car be used for business purposes? This article will answer some of your frequently asked questions about business car insurance. Although a personal vehicle can transport you to and from your workplace, you cannot facilitate your vehicle as a workspace. If your form of employment is taking others to and from various locations, then this does not apply to you. Typically this means a personal car insurance policy does not cover you.
When you buy a car insurance policy, your insurance company needs clarification on whether or not you commute to work using your car. Additionally, you must disclose the number of kilometers you drive per year, the use of your vehicle (business use or personal use) and the distance of your commute. Please let your broker know if any of this information changes.
Business Use Insurance is a special classification used on your personal car insurance policy for drivers who use the vehicle for more than a daily commute. Typical jobs that would require a business rating include:
- Real estate agents
- Sales people who are on the road
There are a few services that need a commercial car insurance policy. Every broker operates differently, so ensure you read your policy carefully. A commercial car insurance policy usually covers:
- Maintenance people (if they are carrying tools)
- Personal emergency equipment (i.e. Tow truck)
- Any delivery service (i.e. Restaurant take-out delivery)
Taxi-style hire services (i.e. Lyft or Uber)
If you are using your personal vehicle for business purposes and a collision occurs, your claim will likely not be processed if you haven’t disclosed the usage of your private car to your insurance company. This denial means you will have to handle the consequences independently. There is also a possibility of policy cancellation altogether and to begin driving again, you will need another policy. However, if your business use covers your daily commute to work, you are covered.
At isure, we are here to help if anything happens to you. If you have any questions, please do not hesitate to contact us.