Should I Insure My Personal Cars on My Business Auto Policy?

Business owners might have many good reasons to want to insure all of their vehicles on their business auto insurance. But there are just as many reasons why you should not.

Your business auto policy is designed to cover vehicles owned by or leased to your business while you or your employees are driving them for business purposes. A business auto policy may not provide adequate coverage for you or your family if you have an accident when using a vehicle for personal use. While your attorney or accountant may find beneficial financial or tax implications for insuring your personal-use vehicles under your business policy, the fact remains that you are exposing yourself and your family to coverage gaps that could be far more consequential for your finances if an accident happens and you are not covered.

Your business auto insurance policy is specifically designed and worded to provide coverage under specific circumstances related to your business. You might consider adding yourself as a “named individual insured” to your business auto policy, but there could still be coverage issues for you and your family members while driving for non-business related purposes. In addition, you are actually exposing your business to further losses by making the business responsible for the personal activities of you, your spouse and other family members. Rather, you can insure your personal-use vehicles under a personal auto policy, and everyone will have sufficient coverage. You can discuss with your accountant or business advisor ways in which you can pay for the cost of your personal auto policies from your business accounts without exposing your business or your family to any unintended consequences.

Talk to us before making any decisions on how best to insure your business and personal vehicles. We will work with you to assess how you and each family member use the vehicles in question, and we will recommend a plan to provide the most comprehensive coverage for everyone involved. Contact us today to discuss this issue in depth.