Know About Business Use Exclusion on Personal Auto Policy in Key West 

Last Updated: 14 Jan 2022

Auto insurance in Key West, FL, is essential. However, the price of it can be impossible for some individuals. If you own a business in Key West, Florida, and choose to use your vehicle for business, there’s no way around it; you will need to purchase additional coverage. well,  know about business use exclusion on personal auto policy in Key West. This will clearly define who uses the car when used and for what purpose.  After researching the top car insurance companies, you’ll be able to make an informed decision.

What Does Auto Insurance Coverage Includes and Excludes? 

The coverage in an auto insurance policy is broken down into sections. When determining your premium price, you will also be given a deductible amount with each section that will cover the expenses should you need to file a claim. The four main sections are liability, property damage, comprehensive, and collision. 

Auto insurance covers almost all types of damage except for pre-existing conditions. If you have had an issue with your car that is not resolved, it may be excluded from coverage. 

top car insurance companies
Top car insurance companies

When Do I Need Personal Auto vs. Commercial Auto Insurance?  

You need personal auto insurance if you drive your car to and from work or for personal use. You would need commercial auto insurance, if you are driving your vehicle for official us.. Very few business owners have the budget to purchase a fleet of cars, which is why it’s essential to know when to have personal vs. commercial auto insurance in Key West. 

There may be times that an individual uses their vehicle to conduct business. If this is the case, an individual needs to inform their insurance company if they want to add business use exclusion on personal auto policy in Key West. This category will take away coverage for accidents while the car is for business. Hence, If you occasionally use your vehicle for business, your insurance company may be able to adjust your coverage to meet your needs. Consider getting commercial auto insurance or hired and non-owned vehicle insurance if you drive for work regularly. 

 

Cost of Commercial Car Insurance vs. Personal in Key West 

If you have a business in Key West, it’s essential to have the insurance that your company needs. What is often overlooked is that if you drive for your business, it is critical to have commercial auto insurance. As a rule, commercial auto insurance costs more than personal car insurance. You will have to pay about 50 percent more for commercial auto insurance than what you would typically pay for a policy that only covers your personal auto use. The good news is that many small business owners have found that they could save money by changing how they drive and the vehicles they drive their employees in. This means that if you are insured with commercial auto insurance, you’ll be able to hire more workers than you could otherwise. 

A commercial auto policy can be more expensive. Most people with this type of insurance are required to have a minimum of $500,000 in liability coverage per accident, according to Insureon. The cost of these policies will vary according to the amount you need for your business and the company that provides it. 

Does a Personal Auto Policy Cover Business Use in Key West?  

Suppose you have business use exclusion on a personal auto policy in Key West, and your vehicle is not insured under a commercial auto insurance policy. In that case, the damages that occur are not covered. This will lead to serious financial consequences if you’re found liable for an accident. 

Although personal car insurance will offer some coverage during these times, it’s much more expensive than any other type of policy you could purchase. Suppose your company vehicle is insured under a commercial auto insurance policy. In that case, you’ll be covered in case of damage to the car or any injuries that occur while doing business with it. It’s also possible to get additional coverage for liability during these times if an individual needs it. 

Why Personal Car Insurance May Not Cover Business Use?  

You should consider getting commercial auto insurance or hired and non-owned vehicle insurance if you drive for work regularly. Business use exclusion on personal auto policy in Key West excludes coverage for accidents while the car is being used for business. The cost of these policies will vary according to the amount you need for your business and the company that provides it. 

Personal car insurance does not cover business use because private car insurance is meant for personal use, and general liability may not cover business damages. If you have an accident while on business, your insurance company may deny specific claims. You should also know that if the damage is significant enough, it’s possible to sue someone negligent in causing the accident. 

Do I Need to Have Both Commercial and Personal Auto Insurance?  

It’s important to note that your commercial auto insurance does not cover off-duty driving if you drive for work. When you are not on the clock, your auto insurance will be responsible for damages and injuries if you get into an accident. The coverage offered under a business use exclusion on a personal auto policy in Key West is limited, so you might need additional liability coverage if the company’s work is dangerous. So if you are driving your vehicle for work, it is crucial to have both types of insurance. Suppose you need additional coverage for business use. In that case, you can either increase your commercial auto policy or purchase hired and non-owned car insurance, which is identical to commercial auto insurance except that the insured only needs liability coverage. 

Conclusion: Therefore, for your business auto insurance in Key West, you should check if your current policy covers off-duty driving. It is crucial to compare rates from the different insurance providers for the best auto insurance quotes, and we are here to guide you. You can get additional information from top car insurance websites. 

 FAQs

Does business use affect car insurance?  

Yes, the use of your car during your business hours will affect your car insurance. 

What is the business use of vehicle insurance?  

Business use of vehicle insurance is created to protect you financially when your car is used for business purposes.  

What is not eligible for a personal auto policy? 

 If you operate a business that involves transporting goods or passengers, using your car for this purpose is not eligible for the personal auto policy. 

Is commercial insurance cheaper than personal?   

Commercial auto coverage typically is more expensive because you’re at risk for higher liability and property damage claims when transporting people or goods for money. 

top car insurance companies

Chris Boyd Witherspoon

+14704432813 

Stone Mountain, GA 30087 

 

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