Many people use their own property for operating business, and while this may save you money, it can also cost you money when it comes to insurance costs. There are many things you need to take into consideration. Do you work for a company but use your own car? Or are you self-employed and work for yourself? How much do you drive for work? What percentage of your driving would you say is business related? How far do you typically travel? All of these aspects of your car usage are important to keep in mind, and it helps to ask the right questions to right people in order to make sure that you are handling everything correctly.
You Drive Your Own Car for an Employer
If you use your own car for work, then there are a few things you want to keep in mind before actually going anywhere. If you have already been using your own car for business purposes, then it’s still beneficial to look at what questions need to be asked before you continue.
When it comes to driving any care, you’ll need insurance. If you were driving a company car for business, your employer would have the car insured. But are you insured if you are driving your own car? Ask your employer. If you are, it still helps to ask what would happen in the event of an accident. Make sure to ask who you should call and what proper documentation you’ll need to have on you in the event that something happens.
If you are not covered by your employer, then you will have to take out your own claim. This could be covered by your current insurance plan, but it still helps to discuss these details with your insurance agent. Regardless of who you are covered by or whose insurance company you speak to after an accident, make sure that you let them know that you were traveling for business at the time of the incident.
You Drive … A Lot
If you happen to drive a significant amount making calls, meeting for appointments or making deliveries, you will absolutely want to look into purchasing a higher liability limit on your personal auto insurance policy. If you use your car specifically for profit, whether you make deliveries or work as a taxi driver, then you will absolutely have to buy additional coverage. If you drive about half of the time that you work, say as a carpenter or a plumber making house calls, then you may also need a commercial auto policy.
You Need to Get a Rental
You may need to get a rental car if you happen to be on a business trip. When getting the rental, tell the company that you are there on business. They’ll take your information as well as your employer’s when you register for the car. That way, if there’s an accident, the rental car company will know to contact your employer. You’ll need to be careful with this, however. When an accident occurs, the insurance company will want to know whether you were on the clock or not. If you get into an accident during the morning rush hour, then your employer’s insurance will likely cover the damages. But if you get into a fender-bender at 3am, they’ll see that you were more likely driving on your own and not on a business call.
When it comes to driving any vehicles, whether for pleasure or for your profession, it always helps to have your bases covered. Talk with your employer and your insurance agent at length about the things you need to keep in mind, the documentation you may need to carry, as well as any important policies and regulations you should understand before heading out on the road.