Does my personal car insurance cover business use?

Driver taking business call beside parked car

Many people use their personal car to commute to work, but some drive around town as part of the day-to-day duties of their job. When it comes to using your car for business, it’s a good idea to make sure you have the right car insurance coverage for your needs.

Let’s take a look at what personal use versus business use means, and your car insurance quote. We’ll also discuss how ride-share use is different from business use.

Personal use versus business use

For car insurance, personal use of your vehicle refers to the typical driving that most people do every day. For example, driving your children to and from school and your daily commute to and from work. Similarly, trips to the movie theatre, grocery store, and the gym would all fall under personal use.

Business use is whenever you use your vehicle as part of your job. Some common examples include: a real estate agent that needs to travel to meet clients for showings or a social worker that may be required to visit several addresses in a day to meet with both individuals and agencies.

If you use your car for any business purposes, it's important to let your insurance representative know. This will ensure your policy is updated and you’re covered in every scenario.

Ride-share use is not the same as business use

Almost half a million Canadians work as ride-share drivers. Most of these people are doing it as a part-time job a few days a week to bring in some extra cash.

Transporting paying passengers is not covered under your personal car insurance. If you’re planning on changing the way you use your car, it’s always a good idea to speak with your insurance representative to make sure you’re covered for ride-share services like Uber or Lyft. You may need to buy an add-on coverage to ensure you’re adequately covered.

In short, the difference between ride-share and business use is that business use doesn’t include carrying paying passengers.

Have the right car insurance coverage  

Many people use their personal cars for business purposes every day. If you’re one of them, be sure to let your insurance representative know so they can update your policy and ensure you’re covered for your needs.

If you’re planning to become a ride-share driver, ask your insurance representative about specific ride-sharing coverage to make sure both you and your passengers are protected in all scenarios. 

Are you a new driver? Learn more about car insurance for first-time drivers.  Renting a car?  Read more on whether rental cars are covered by personal auto insurance.

The content on this page is for information purposes only. The insurance products described herein are subject to terms, conditions, restrictions and exclusions, which are outlined in our final policy wording. Please speak with your Aviva insurance broker if you would like to learn more including whether these insurance products are available in your province or territory. Insurance products are underwritten by insurers in the Aviva Canada group of insurance companies, which are subsidiaries of Aviva Canada Inc. Aviva and the Aviva logo are trademarks used under license from the licensor.