Is your personal vehicle an essential part of your job? Depending on how you use it, you may require additional protection beyond your current car insurance.
Key takeaways
- There is a clear distinction between personal and business use when it comes to your vehicle
- Personal auto insurance may not fully protect your business activities, so speak with your insurance representative about your specific needs.
- Different business activities need different types of auto insurance coverage, from occasional client visits to full-time business use.
What is considered personal vs. business use?
It’s important to understand the difference between what your insurer considers personal and business use. Depending on how the vehicle is used, there are different risks involved that will affect the way your policy is underwritten. If you’re using your vehicle for purposes beyond what is covered in your personal car insurance policy, you may not be adequately covered if your car is damaged or stolen.
If you use your vehicle to earn an income or as part of your job, you must contact your insurance representative to ensure that you have the right coverage for the way you use your vehicle. If you don’t, you may not be covered for damages in the event of a loss.
Personal use: Your everyday driving
Personal use includes the daily driving activities most Canadians do regularly:
- Commuting to and from your regular workplace—report any changes in distance to your broker or insurer because daily commuting distance could impact your insurance rate
- Running errands and shopping trips
- Taking your children to school or activities
- Visiting friends and family
- Weekend getaways and vacations
Business use: When your personal vehicle becomes a work tool
Whether you're one of Canada's 1.19 million small business owners or are employed and using your personal vehicle in the course of your job, your insurer needs to know how you use your vehicle to ensure you have the right coverage for the way you use it.
What about ride-share driving?
Statistics show that nearly half a million Canadians work as ride-share drivers. This requires specific ride-sharing insurance coverage that's different from standard business-use protection.
If you want to use your car to drive for a ride-share company such as Uber or Lyft, talk to your insurer about adding this endorsement to your personal vehicle insurance.
Has your premium gone up?
Whether you take advantage of additional business protection or not, it’s possible that your premium can change year over year. If you’re wondering, “Why did my car insurance go up?”, there a number of possible reasons. Talk to your insurer to understand the factors that affect insurance rates.
Next steps: Getting the right coverage
Making sure your vehicle has the right protection for your business needs is simpler than you might think. Your insurance representative is ready to guide you through a personalized review of your coverage, taking into account how you use your vehicle for work and what matters most to your business.
When you're ready to explore your options, your insurance representative will walk you through a straightforward process to understand your business activities. They'll help you find coverage that fits both your business needs and your budget, ensuring you have the right protection for the way you use your vehicle.
Ready to protect what matters? Contact your insurance representative today to review your coverage options. You can visit our website to learn more about protecting your business journey.
