Does Commercial Auto Insurance Cover Personal Vehicle Use?

The rules about using business vehicles for personal errands and tasks and how you should insure those vehicles can be confusing. A business-owned vehicle must have commercial auto insurance coverage that complies with state and federal laws. Commercial auto insurance can also provide coverage for business vehicles, even when used for personal activities. 

Talk with the agents at RCU Insurance Services in Santa Rosa, California, today to ensure you have appropriate commercial auto insurance in place to provide coverage for all of the ways you use your company-owned vehicles. 

Who Needs Commercial Auto Insurance? 
Any business that owns or uses vehicles during everyday business activities must purchase the minimum state-required amount of commercial auto insurance liability coverage. You may also purchase additional coverage to help pay for repairs or replacement of your company vehicle after a covered accident. 

Your agent can help you determine which commercial auto policies best meet your company’s needs. 

Does Personal Auto Insurance Provide Coverage for Business Use? 
Commercial auto insurance provides coverage for company-owned vehicles, even when they used for personal purposes. However, if you or one of your employees uses their personal vehicle for business purposes, your personal auto insurance policy will not provide coverage. 

Hired and Non-Owned Auto Insurance 
If you or your employees use personal vehicles to make business deliveries, run errands, visit customers or conduct other business activities, your agent may recommend purchasing hired and non-owned auto coverage (HNOA). 

You may be able to add hired and non-owned auto coverage to your business owners policy (BOP) or general liability insurance policy. 

Hired and non-owned auto liability insurance provides two main types of coverage: 

• Non-owned auto insurance provides coverage when you or your employees drive personal vehicles for business use.
• Hired insurance provides coverage when the business hires, leases, borrows or rents a vehicle for business use. 

• Legal expenses if your business is sued for negligence resulting from a covered auto accident.
• Medical expenses if you or one of your employees are responsible for third-party injuries after a covered accident.
• Repairing or replacing someone else’s property after a covered auto accident.