Can an Employees Vehicle be a Commercial Vehicle?

If your employee travels or carries cargo in their personal car for work, they may qualify for commercial auto insurance. This is because commercial auto insurance doesn’t only cover vehicles owned by a company, but also non-owned vehicles used by the business for work purposes. It is important that employers and employees identify the distinction and carry the right insurance for their shared or individual risks. 

Commuting to and from work is not considered a work purpose and should be covered under an employee’s personal auto insurance policy.  

Driving Professionally on A Personal Policy  

Many employers who require their employees to do a lot of driving only require that their drivers carry basic personal insurance. Most pizza chains, for instance, have no real stipulations on drivers besides basic proof of insurance. However, an employee who drives for work on a regular basis should make sure to get covered on a commercial auto insurance policy no matter whether their employer mandates it.  

If you are involved in an accident while driving for work, there is a good chance that your insurer will not cover you on your personal auto policy. If you only drive for work occasionally, you may be covered, but only if you keep your insurer up to date on the fact that you might be making a delivery or picking up a client now and then.  

Do Employees Need Commercial Auto Insurance and Personal Auto Insurance? 

Fortunately, employees only need one policy. While your personal auto insurance might not always cover commercial use, a commercial policy should cover personal use.  

Another option is to buy additional liability on your personal insurance policy. However, this can be considerably more expensive — and more complicated — than simply getting your car covered under a commercial auto insurance plan.  

If you are the employee in this instance, get covered under a commercial auto policy— no matter what your employer may tell you. If you are the employer, advise your drivers to get commercial auto insurance, or else save that task for employees on your payroll who already have commercial auto coverage.  

Keep in mind that rules and exceptions will differ if you offer company cars or if employees share company-owned vehicles, so be sure to evaluate your needs and contact your insurance agent if you have any questions about what coverage you need and what it may or may not cover.