It can be a common occurrence to overlook how you are declaring how you use your vehicle when renewing your car insurance. There are several classifications that determine your insurance premiums and declaring how you use your vehicle is one of them.
Nowadays people are using their vehicles for their jobs more than ever. Whether you work for yourself or as an employee of a company and you use your vehicle while working, you need to make sure you notify your insurance broker or insurance company and ensure the classification of your vehicle insurance is adjusted to “business use”. There are several reasons you would need to update your policy, such as, do you drive to the bank daily for your job, out of office meetings. Many occupations use this coverage such as a consultant, a realtor or sales person to meet clients at various locations.
Business use car insurance also includes using your vehicle for pleasure use and adding an additional driver to your policy. Pleasure use refers to using your vehicle for leisure, running errands and day to day activities.
Do not to confuse business use car insurance with is commercial use, which would be meant for a taxi, delivery drivers or driving services such as Uber. these types of commercial driving would be a separate policy.
One thing to know, business use car insurance is more expensive than most types of car insurance. The reason for this is that there is far more risk involved when you are using your vehicle for work. People that use their vehicle for work are statistically more likely to be involved in an accident than drivers who are not. The main reason is; they are spending far more time on the road. The good news is, speak to your accountant and there may be some tax relief.
Now that we have gone over what business use is, it is critical to have the correct rate class indicated on your insurance policy. How you drive, how far you drive and what you are using your vehicle for will determine coverages and premiums. Full disclosure to your insurance broker is important or you will run the risk of not having any coverage should you need to make a claim if it is not accurately indicated on your policy.
Check with your insurance brokerage for the right type of car insurance coverage that suits your life and needs.