There are many situations and reasons why an employee drives his or her personal auto to perform business related tasks including: travel between work sites, client visits, and transportation of colleagues. It is important to consider the risk you assume when you drive your car on company business.
There are two different kinds of risks and we will address each. The first risk is what we might call incidental use. The second risk is when a person drives his/her own car every day as part of their job, like a sales person. This person’s job description actually includes using their own car as part of the day to day job functions.
Situation One-Incidental Use
Generally in these situations you would be covered under your personal auto policy. If you find you are driving more than 30-40% of the time on company business, it would be best to contact Colorado Insurance for a review of your coverage. Examples of incidental use would be:
- Going to a company event
- Taking the mail to the post office
- Picking up supplies at the store
- Going to see a client – occasionally
Situation Two- Drive as Part of the Job
Many personal auto policies have drive-for-business exclusions, requiring individuals to inform their agents that they drive for work and to acquire an endorsement. Without the endorsement, insurers may refuse to cover a claim. Here are some examples of work related situations where you might need to make adjustments to your insurance:
- Outside sales professionals
- Real-estate agents
- Driving more than 50% of the time for the company
- You receive an auto allowance
- You take a tax deduction for work related driving
If you use your vehicle for delivery or landscaping you might need to consider a commercial policy, especially if the vehicle is used 100% for business use.