The key distinction for determining if a personally owned car may need commercial auto insurance coverage is whether the vehicle is used for any business-related purpose.
Defining Business-Related Purpose Your auto may be defined as a commercial vehicle if you use your vehicle to:
- pick up or deliver any goods,
- provide a service for a fee,
- travel to a remote work location or between work locations, or
- visit client locations.
Additional conditions under which your car may be defined as a commercial vehicle include:
- the owner named on the vehicle title is a business—incorporated, unincorporated or LLC,
- the vehicle is rented or leased by others,
- the vehicle is equipped with a snow plow, has an altered suspension system or other equipment or modification, or
- the vehicle is driven by you or your employees for both business and personal use on a consistent basis.
The wisest course of action is to describe how you expect to use your vehicle for personal and business purposes and let your insurance agent guide you to the most appropriate policy for your situation.
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