Does My Car Insurance Cover My Business Miles?

As more Americans are working from home or starting their own business (including side hustles like driving for car sharing services like Uber and Lyft) it is important to know whether your current personal car insurance coverage is protecting you for the miles you put on it when working in your business.

More and more of us are transitioning into work-from-home businesses or side gigs (as part of the evolving gig economy) like ride-share companies (i.e. Uber, Lyft) or door-to-door delivery services. These opportunities provide additional income and the ability to become your own boss as well as improve your financial outlook. Before operating a business from your home that requires the use of your personal auto, you should check with your auto insurance provider to see what you may (or may not) be covered.

What Protections Exist in Your Personal Auto Policy? 

A personal auto policy (PAP) is the car insurance protection you have on the vehicles you own. This coverage typically provides coverage for loss that may occur as a result of an accident, physical damage, or theft. The types of coverage that you have within a PAP may include (all or in combination): 

The PAP auto insurance coverage you buy on an individual basis differs from commercial policies purchased by businesses, known as a business auto policy (BAP). Except for commercial enterprises involved in an auto-related business (including motor carries and trucking), BAP is the form of auto insurance a business buys. It provides protection to the company when a company vehicle is used, or an employee is engaged in an activity on behalf of the business with their personal vehicle. 

Do I Need a BAP for My Home-Based Business? 

Depending on your car insurance company and the type of coverages available, you may be covered for some of the business uses of your personal vehicle. This, however, is not an absolute statement for every person who is operating a home business and uses their car. Some insurers may require you to carry an endorsement to your PAP to specifically provide liability or other coverage for your auto insurance, in the event of an accident resulting from business use. 

You may not need to purchase a separate BAP, but you should check to see if your personal car insurance is adequate for your home business needs. Owning your own business provides you with a way to increase your earnings. Not owning the correct type if auto insurance could reduce that income if a loss occurs.

Also Read: What Defines a Commercial Vehicle?