If you run a business from home, there are factors to consider as to
whether or not you will need personal car insurance as you would if you
commuted back and forth to a job that requires no other travel, or
whether you will need a commercial car insurance plan. Giving the
honest details of your particular situation to your auto insurance
agent or customer service representative from your insurance company
will place you in the correct category.
The rates for business car insurance need not be exorbitant. As with any car insurance, a good driving record is essential to maintain lower rates. If you are considering hiring someone to be working for you, that person must also have a good driving record to maintain the lowest rates.
In so many cases, however, personal insurance is adequate for the home-based business owner. If you are using the same vehicle for personal use, the number of miles you estimate to travel for business and personal use will be a consideration as to whether personal insurance coverage will be adequate. The worst you can do is not be informed, because if you continue to drive with a personal car insurance policy, and you have an accident, or someone who is driving your vehicle that is doing work for you does, it may not be easy, and may be impossible to collect on the claim if the insurance company of either party involved in the accident can prove that you have misrepresented the way you use your vehicle.
If your current insurance provider does conclude that you need business auto insurance coverage, it may also be a good time to shop around for competitive rates. There are also many companies that will allow you to attach a rider to a personal car insurance policy that adds the benefits of coverage for business travel. Especially if the business travel only exceeds personal travel slightly over 50% of the time, this is a consideration that may save you some money. Although the difference between commercial and personal auto insurance varies by only about 10-20% higher than personal auto insurance coverage, with the price of fuel, any savings involving travel by car can be significant these days as long as you remember that it isn't significant enough to misrepresent your usage if you are involved in a motor vehicle accident.
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