So you got a car. Great! So you started a new business. Even more great! What do these two have in common? That’s what we want to help you find out. Sometimes when it comes to your vehicle, “it’s not personal, it’s just business.” While it was used for both personal and business reasons, I’m sure no insurance company would want to insure that 1941 Lincoln Continental Coupe from The Godfather.
After reviewing our three auto policy options, not only will you have a better idea of what type of policy the ’41 Lincoln should have had, but maybe your own as well:
Personal Auto Policy: This is the policy for typical everyday use like commuting to work, getting the kids to school, driving to the grocery store and taking a fun summer road trip. In short, a good way to remember it is commute/pleasure.
Personal Auto with Business Use Policy: This is still a regular Personal Auto Policy, but with a modification for Artisan use. This is generally with contractors in mind who may be driving to and parking at job sites where the vehicle is slightly more at risk for getting damaged or damaging others.
Commercial Auto Policy: Everything we have not previously mentioned, you will likely find in this type of policy. This can range from delivery of goods (yes, even pizza) to tow trucks to taxi and limo services.
Now, let’s highlight one particular vehicle use situation that has grown to a number no insurance company could have predicted. We are talking about ride sharing – especially Uber and Lyft drivers. These seem no different than other taxi services, so shouldn’t they be in the Commercial Auto Policy category? It took a while for insurance companies to figure out that answer, but what many companies have concluded is to include ride-sharing coverage in Personal Auto Policies with the appropriate endorsement added.
Once you feel comfortable you have the correct type of policy (which we are happy to give you guidance on), ask yourself how quickly you think you would meet your limits. If you are in the wrong kind of policy, limits won’t matter. If you’re still not sure which type of policy you need, consider how far coverage goes on a personal policy vs a commercial policy. Do you need higher limits than what a Personal Auto Policy can offer? Would a Commercial Policy better cover the risk? Were the Corleones covered for bullet holes?