This could be the world’s shortest blog post if we simply addressed the subject of the title, because the way your car is titled has no affect on the type of auto insurance coverage you need. But we are going to go a step further and tell you why.
An automobile does not need to be owned by a business in order for it to be used for business purposes and, therefore, need commercial auto insurance coverage. Many business owners use their own cars for business-related travel, and even get tax write-offs for wear and tear. The IRS isn’t asking for titles to be in the business’ name because sometimes, a business doesn’t actually need an entire vehicle as an asset.
When you have your personal automobile covered by personal auto insurance only and you use the vehicle for business purposes, then you are flirting with disaster because if you suffer an insurable incident while driving for business purposes, your insurance company can deny the claim.
Commercial auto insurance is designed to protect both personally owned and business-owned vehicles while they are operated on a business basis. Anything from running errands, carrying client property, or travel to meetings can qualify as a business purpose. In addition, it covers the liability created by transporting business or client property.
If you want to get a blended policy that has more flexibility in coverage, you can get one that covers your auto for both personal and business use and includes certain members of your family. This way, you can cover your car for both personal errands such as grocery store runs, and business errands like picking up a client from the airport.
Having the proper insurance is vital in ensuring that you are paying for protection that you will actually be able to utilize. When you have the wrong auto insurance, you are paying for coverage that is likely to result in denied claims and leave you financially exposed and liable out of your personal or business pocket for accidents and injuries. Instead of leaving yourself open to this potential damage, get the right protection on your vehicle and drive with confidence.
Contact us today and be sure you have Austin Car Insurance coverage that fits your needs!