I Drive My Car For Company Business…Now What?

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.

colorado-auto-insuranceThere 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.