Insurance, explained

Personal auto or commercial auto?

The way you use a vehicle matters as much as who owns it.

The quick answer

Personal auto insurance is designed primarily for personal use. Business activities such as delivery, transporting equipment or operating vehicles for a company can require different coverage. Tell the broker how each vehicle is actually used.

Describe a typical day

Include commuting, deliveries, customer visits, hauling tools and employee driving. The insurer needs an accurate picture of the exposure.

Look at ownership and drivers

Company-owned vehicles, multiple employee drivers and work contracts can affect the appropriate policy.

Review hired and non-owned vehicles

If employees use their own cars for business or your company rents vehicles, ask about hired and non-owned auto coverage.

Get an answer before a claim

Do not assume occasional business use is always covered. Ask the broker to review the policy language and carrier requirements.