Why Personal Car Insurance May Not Cover Business Use | Insureon
Commercial auto insurance vs. hired and non-owned auto insurance
If you drive your personal vehicle for work purposes occasionally, your personal insurance aircraft carrier might be able to tailor your policy to accommodate your needs. If you drive for work on a regular basis, consider adding commercial car insurance or hired and non-owned car policy .
The difference between personal auto, commercial auto, and hired and non-owned auto insurance
The type of indemnity your clientele needs depends on who owns the vehicle and what it ’ s used for .
Personal liability auto insurance is required in about every state. It pays for the costs of repairs to other drivers ’ cars or other property if you cause an accident in your personal vehicle. It besides covers medical bills for third-party injuries .
Your policy may besides include collision or comprehensive coverage, which can pay for repairing your vehicle and aesculapian bills after an accident. It may besides cover things like larceny, vandalism, or storm damage.
A personal car policy would not cover you for accidents and lawsuits related to any business function of your vehicle, such as making deliveries or hauling equipment to a job site .
Commercial auto insurance protects your business from the costs of accidents in your company-owned vehicles. Like personal car indemnity, it is typically required by state of matter law and can be purchased as car liability coverage only, or with collision or comprehensive coverage. It covers any of your employees who have your license to use the company vehicle .
about every submit requires commercial car policy for businesses that have vehicles titled to the caller and employees that drive to problem sites. Businesses that transport workplace equipment or employees and clients via company-owned vehicles may besides need to purchase commercial car insurance coverage .
Hired and non-owned auto insurance covers the costs of a lawsuit over an accident you or your employee caused while driving a personal, rented, or leased vehicle on occupation. This includes employees who use their own cars to run work-related errands or rent cars for business trips .
just one accident while driving on business in a personal or chartered vehicle can wind up costing your business thousands of dollars – far more than the expense of putting extra coverage on your company car .
Food overhaul companies, cleaning services, and construction trades are good a few of the businesses that may need HNOA coverage, but any business that regularly – or even occasionally – uses personal vehicles for work should consider HNOA coverage.
How does hired and non-owned auto coverage work?
If you or your employees drive your personal vehicles for any of the surveil purposes, you should consider an HNOA policy :
- Running business errands
- Visiting client locations
- Making deliveries
- Picking up supplies
- Transporting people or goods for a fee
- Transporting work tools and equipment
HNOA covers the follow costs if you or an employee cause an accident driving a personal, rented, or leased vehicle for business use :
- Damage to another vehicle
- Other third-party property damage, like a fence
- Bodily injury to other parties involved in the accident
typically, HNOA will supplement any coverage from a personal car policy. For example, if you ’ re visiting a client and are creditworthy for an accident, your personal car indemnity may cover the costs to repair your own vehicle .
HNOA wo n’t cover damage to your own property – lone third-party liability costs. If you ’ ra sued for causing wrong to vehicles, property, or wound to others, your HNOA policy would pay the costs of legal fees, judgments, or settlements .
How can you get HNOA insurance?
many businesses add hired and non-owned car coverage to their general liability policy policy. You can besides purchase HNOA individually through your policy agent, but sometimes buying the policies together can lower your insurance rates.
How can you reduce the risk of an accident while driving on business?
even with the correct coverage, it ’ sulfur best to avoid needing a claim in the first stead. As a business owner, it ’ s up to you to create a culture of guard for your team. Taking the meter to build a safer workplace can keep you, your employees, and your penetrate line in the best condition possible .
hera are some best practices for vehicle guard :
- Develop a company policy that outlines what “safe driving” means. Include rewards and potential disciplinary actions.
- Remember: car accidents are costly but often preventable.
- Adopt a “no contact” rule where employees avoid phone calls and texts while driving. Even hands-free phone calls can divert a driver’s attention.
- Check employee driving records before letting them drive for work.
- Offer safety information such as training programs, workshops, and seminars on road safety.
- If you’re buying or leasing a company vehicle, research its safety record beforehand.
complete Insureon ’ s slowly on-line application nowadays to compare commercial car policy quotes from top-rated U.S. carriers. once you find the right policies for your little business, you can begin coverage in less than 24 hours .