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Understanding Business Use Vehicles for Car Insurance

2018 07 20 Blog Delivery Boy In Car Writing On Clipboard

By Madeline Klein on October 5, 2018 in Policy Changes

Many car insurance companies will ask if you use your car for “business use.” It can be a confusing term in the insurance world because it seems to have so many different meanings. Does it mean you drive your car to work, you drive a company car, or something completely different? We’re here to help explain auto insurance for business use and let you know what we mean here at Say when we ask about “business use.”

What auto insurance for business use really means

Say considers business use to mean you drive your car primarily for work. That means it is your personal car, but you wouldn’t be able to complete your job without it. In most cases that means that you are paid to drive either people or goods around. Still confused? Here are some examples to know if we’d consider your car being used for business:

  • You drive for a ride-sharing service, like Uber or Lyft
  • You deliver food, like pizza, for income
  • You deliver newspapers and throw them from your car
  • You use your car as a rolling store, like a food truck or ice-cream truck
  • You use your car for hauling materials, like a lawn care professional would

What isn’t considered business use

Merely driving your car to and from work isn’t considered “business use” by Say. This travel to and from work is a regular part of life. If you do happen to have an accident on your way to or from work, your Say policy will kick in if you’ve purchased the right type of coverage.

Insurance for company cars

If your company provides you with a car, they typically provide the insurance for that vehicle. These cars would fall into the business use category, but the typical person won’t have to worry about getting insurance for them.

If you own a business and are looking to get cars for your employees, you’ll have to get special business use insurance for those vehicles. Your regular insurance policy, or the policies of those driving the cars, may not provide coverage for people if there is an accident while the vehicle is being driven for company work.

Why Say doesn’t offer business use car insurance

Business use cars get a lot more use than your typical car does. That means there’s a much higher risk that there’s an accident. And, business use vehicles are typically moving cargo like people or goods, and that means they need car insurance for a commercial use vehicle. Simply put, business use cars need a type of coverage that Say currently doesn’t offer.

How to know if your car is considered business use

If you use your vehicle regularly for any type of work, you should talk to your insurance provider and make sure you have the correct kind of coverage. We never want you to experience that call after an accident when your insurer realizes they can’t cover the incident.

If you have a policy through Say and are questioning whether or not you need car insurance for business use, give the Say Service Squad a quick call at 1-800-225-5729. We’ll be happy to talk through your specific case and help determine if you need a more commercial-focused insurance policy.

Madeline Klein is Say's Digital Content Producer. She graduated from the University of Missouri with a Bachelor of Journalism, emphasis in Strategic Communication. Her experience is in writing and digital media. Madeline loves using her creativity to write and design new and exciting pieces of work for Say!