Commuting is a fact of life, that most people have to do. Whether it’s going to and from work every day, or travelling to new cities while on the job, commuting is practically unavoidable in the working world. What many people don’t realize, though, is your commute can have an impact on your auto insurance policy. When it comes to work, it’s important to know: does your personal insurance cover you? Or, do you need a commercial policy?
The simple answer is: if you use your vehicle to get to and from work or a meeting, you’re covered with personal insurance. If you use your vehicle to do your work, you’ll need to update your policy.
Getting Down to Business
If your business involves your vehicle, you may need a commercial auto insurance policy. This includes: making deliveries, emergency transportation (eg. using your vehicle as a tow truck), and ridesharing services.
That’s just a sample of the types of business that are excluded from personal policies, however, your insurance company may also have other exclusions. It’s always a good idea to read your policy carefully, and to reach out to your broker with any questions. Not knowing what your policy covers could end up costing you.
If you happen to be involved in a collision while using your personal vehicle for business, you could be on the hook for any damages resulting from the accident. On top of that, you could have your policy cancelled altogether for failing to disclose that you’re using your personal vehicle for business purposes.
Talk To Your Broker
Even if you’re just using your vehicle for a simple commute to and from work, your insurance company needs to know this. When you first apply for auto insurance, you need to disclose your commute distance, how many kilometres you typically drive each year, and if you’ll be using your vehicle for business – and if so, in what way. As with all insurance policies, be sure to let your broker know of any changes to your situation.
If you’re considering using your vehicle for business, or if you have any questions and concerns regarding your auto insurance policy, contact a Regal Insurance Broker today.