Business Auto Insurance

Reader’s Question:

If I use my car to deliver newspapers in our neighborhood in New York, will I need auto insurance for business?

Keith

Long Island, NY

If a car is used to deliver packages, merchandise or produce for a pay, or is used to assist in the operation of a business, then that car is considered under livery use and will not be covered by a personal passenger auto insurance. What you will need is auto insurance for business. If you get into an accident without this type of insurance, you could be denied benefits by your auto insurance company there in New York because the nature of use of your car at the time of the accident is not covered in your current policy.

Bear in mind that all claims are investigated by auto insurance companies. With the prevalence of insurance scams, any form of faulty insurance claim is taken seriously. Expect to receive a demand from your insurance company to obtain auto insurance for business in case something unfortunate on the road does happen while delivering newspapers and you’re still using personal car insurance. Be prepared to pay higher premiums, too, because a commercial car insurance policy costs more than the regular coverage. This is only to be expected since you’re supposedly gaining profit from the use of your car. If you are not willing to do that, then you might want to think about using other ways of delivering those newspapers.

Tags: auto insurance claims, Business Auto Insurance, business car insurance, business insurance, Commercial car insurance

Reader’s Question:

I own a business here in North Carolina. I don’t drive my own car, I rent. Am I required to get my own auto insurance policy?

Gerry

Charlotte, NC

It’s true that more and more people are starting to use public transportation. However, even though you don’t have your own car, you still run the risk of getting into a road accident. You still have to be responsible for any damage you might cause another vehicle. Not only that, you have to, of course, protect yourself from any injury you might suffer because of a vehicular accident. For these reasons, it is still advisable for you to get an auto insurance policy. There are a lot of auto insurance policies out there. I’m pretty certain you can find one that fits your specific needs.

A non-owners’ policy would probably include liability coverage, which takes care of the damage you have caused another vehicle. It will also cover medical payments and have uninsured/underinsured motorist coverages (UM coverage). UM coverage pays for the damage to your vehicle and the medical expenses you may have incurred in the event that the other driver’s insurer cannot do so. Your one other option is to buy auto insurance policies offered by car rental companies but if you rent a car a lot, getting your own non-owner’s auto insurance policy will end up being cheaper.

Tags: auto insurance policy, cheap auto insurance, non owners insurance, rental car insurance