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When should you upgrade your personal auto insurance to commercial auto insurance?


If any part of your job (for example; making deliveries, driving passengers and so forth) requires you to drive then your personal auto insurance will not cover it. If you are just using your vehicle to drive yourself back and forth from meetings, it is important that your mention that to your broker.

If you have a business, you need commercial auto insurance. But what if you’re a sole proprietor who uses your personal vehicle for business purposes? At what point should you upgrade your personal auto insurance to commercial auto insurance? There are a few things to consider when making the decision to upgrade your personal auto insurance to commercial auto insurance.

First, commercial auto insurance offers more comprehensive coverage than personal auto insurance. This includes things like coverage for leased vehicles and hired drivers. Second, commercial auto insurance rates are based on the type of business you have. So if you have a high-risk business, you’ll pay more for commercial auto insurance than someone with a low-risk business.

Finally, you need to consider the cost of commercial auto insurance. It’s typically more expensive than personal auto insurance, so you need to make sure the benefits of commercial auto insurance outweigh the cost. If you’re unsure whether you need commercial auto insurance, talk to your insurance agent. They can help you determine if your business activities warrant the upgrade.

You will also need to disclose the km driven for business use compared to personal purposes. If you are unsure about upgrading your insurance policy, we have listed some services below for which the upgrade might be necessary.

  • Using your vehicle for transporting passengers or making deliveries
  • Using your personal vehicle for emergency purposes
  • Renting our vehicle to other people for commercial purposes

If you get into an accident while using your personal vehicle for commercial purposes, you could be at risk of getting your policy cancelled for not disclosing he change to your broker. However, if you have disclosed these changes to your broker, there shouldn’t be a problem.

If you are thinking of starting your own business or if you are planning on using your vehicle for Uber, Lyft or other ride sharing services, please contact your broker and let them know of this change.

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