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What is Business Use Auto Coverage?

Business Use Auto Insurance covers personally owned vehicles that are used frequently for business use. Examples of qualified owners include Real Estate Agents, Lawyers, Outside Sales Representatives, Advertising Agents - in general, anyone who uses his personal vehicle to call on new or existing customers and/or any business-related driving.

Other factors that determine Business Use:

  • Many business people use the same vehicle for both business and personal use. If the vehicle is owned by the business, make sure the name of the business appears on the policy as principal insured or as additional interest.
  • Most auto carriers will add Business Use Endorsement to your personal auto for an additional premium based on your occupation and use.
  • Advertising with magnetic signs or lettering on your vehicle may automatically disqualify you for personal business use rates. Check with your agent.
  • We can help you determine if Commercial Coverage is necessary, especially if you are self-employed and your personal vehicle is in your business name. Example: You are a skilled worker who travels to different job sites to do carpentry. Is this commercial use? With some companies, it may be. As an independent agent we can find you the best price.
  • We can help you determine the amount of coverage required to protect not only your personal assets, but also your business assets, especially if your vehicle has double exposure due to its use.
  • Personal Umbrella can also provide you with inexpensive additional coverage to protect your business and personal assets.

    What’s covered?
    Business Use Coverage is the same as described under your personal auto provisions.

        1. Liability (Limits up to $500,000 available)
        2. Collision Comprehensive
        3. Medical Payments
        4. Uninsured Motorists
        5. Towing & Rental
        6. Road-Side Assistance
        7. Gap Coverage (See explanation under auto coverage)

    When is Commercial Use applicable?

  • Most commercial vehicles are described as pickup trucks, vans, cargo vans, step vans, ¾ ton trucks, one-ton trucks, dump trucks, long haul tractor-trailers, and all types of transportation vehicles, vehicles for hire, and vehicles that are primarily driven by employees.
  • Common industries whose vehicles are rated for commercial use are general contracting, delivery, service, transportation, cargo-hauling, etc.
  • Factors used in determining rates include type of vehicle, gross vehicle weight, radius of usage, name, age, and records of driver(s). All determine rates. Please Note: Allowing drivers with bad driving records could drastically affect your policy premium and renewability with certain carriers.
  • For more information regarding commercial use and rates, please refer to the Commercial Vehicle section located in this website.

    For a quick quote, you can contact our quote department directly at (504) 441-RATE (7283) or complete the Online Quote Request form and you will be contacted immediately.