If I use my personal vehicle to meet with customers do I need commercial insurance?

[Spin]

Or will a normal car insurance policy be enough?

 

[adjusterjack]

The personal auto policy allows for business use of cars but you have to tell your insurance company about it and pay a higher premium.

Business use of trucks has traditionally required commercial insurance.

I'm sure you don't like the idea of paying more for your insurance. But if you conceal the use to avoid the premium increase you may find your claims denied and the policy rescinded when the company finds out. Then you'll have a really painful increase in insurance cost.

On the bright side, business use of your car gets a tax deduction, either by using the business rate per mile or a percentage of your actual expenses. You can get a tax booklet from the IRS website.

 

[Al3x Lee]

Or will a normal car insurance policy be enough?

Is this for your business or are you working for someone else?

 

[Spin]

Is this for your business or are you working for someone else?

My own, when I start selling FE as an independent agent.

 

[Al3x Lee]

My own, when I start selling FE as an independent agent.

I would take adjusterjack's advice then. You're good to run off your personal auto policy as long as it's rated accordingly

 

[adjusterjack]

My own, when I start selling FE as an independent agent.

Make sure you get Errors and Omissions insurance before you sell your first FE policy.

 

[ehall2]

You will be OK as long as you rate your policy as business use.

 

[Gustavo Fring]

This is the very questions I was having for myself while starting up my agency less than two weeks. As someone who's worked in this industry for years, I would agree with "adjusterjack." Personally, I'm not going to tell my insurance company until I begin to service my own policy again (our Farmers Agency was bought out). Personally I won't disclose that it's for business use until I make a substantial amount of marketing drives and meet ups.

 

[adjusterjack]

Personally I won't disclose that it's for business use until I make a substantial amount of marketing drives and meet ups.

That would be stupid.

I hope nobody follows that advice.

I invite you to read your auto policy. Find the provision that looks like this:

Concealment or Fraud There is no coverage under this policy if you or any other person insured under this policy has made false statements with the intent to conceal or misrepresent any material fact or circumstance in connection with any claim under this policy.

You get in a wreck and you risk having your claim denied and your policy rescinded. That goes on your insurance record that all insurance companies can see and your insurance costs double or triple.

Pay a few $$ now for the right coverage and avoid paying $$$$$$$$$$$$$$$$ later.

 

[Gustavo Fring]

I hope nobody follows that advice.

I didn't give that as advice. Please use reading comprehension. I just said what I would personally do. I know what my policy says and it doesn't say that. I invite you to get back to work and actually be productive.