Business-related vehicles typically require business auto insurance. But what happens to this protection when you quit working and drive home? What happens to your commercial auto policy? Continue to cover personal use of the vehicle.

Commercial auto insurance can cover commercial vehicles that drivers use to conduct personal business. But, certain conditions get included in many policies that only cover some cars employed for private use. It is the case mainly when people use their vehicles for business purposes and to enjoy their leisure time. It is how it works.

Commercial Auto Insurance

They are also known as Business auto insurance. This policy covers vehicles used or owned by a company, the driver operating on behalf of the business, and the company itself. It usually provides more coverage and specialized protection for these vehicles since if a collision occurs, the industry is likely to lose significant funds due to the crash.

The Coverage May Apply To:

  • Cars that are owned and operated by a company for delivery, for example, delivery vans
  • Cars that the company provides to employees for use at work as well as in private
  • A personal vehicle owned by someone who they frequently use for business

Coverage is available to a person who uses a vehicle privately because, firstly, all drivers are required to carry insurance for their car as per the majority of states’ laws. Additionally, the standard car insurance doesn’t apply to commercially driven or commercially owned automobiles.

However, depending on whether a car driven personally fits in this hierarchy, automobile insurance for commercial use may or may not be valid.

Business-Owned Vehicles

If a business owns a car, they are the one who is required to purchase insurance on commercial vehicles. The policy covers both the company and the owner of the company. The policy will also likely include permissive users. It has employees and chauffeurs who possess the owner’s permission the use their vehicle. Thus, the company’s commercial auto insurance remains valid if the employee operates the car during their off hours.

While the employee may be operating off-hours, it doesn’t mean they’re not driving a car representing the company. A crash could result in expensive expenses. In addition, the company’s commercial auto insurance policy is the only policy that applies to this car regardless of the time you utilize it. So, using the vehicle during the off hours will ensure you get covered with the protection required to secure the vehicle.

Personal Cars

The company may provide employees with a vehicle, and they have the express consent that it is the personal and company car. However, some drivers may need permission from their employer before traveling for business or to specific locations. Thus the commercial insurance policy for automobiles will typically cover the vehicle regardless of where they travel.

Your car is yours. Suppose an employee is driving their vehicle for both business and pleasure. In that case, they might not be covered for this car in their time as per their employer’s policy. You might get into an accident on the weekend. When you’re not working, Your employer may have no involvement in your accident. It might be best if you kept a private auto insurance policy to cover you at these times.

Remember, even if you use your vehicle for business purposes, you could purchase an individual commercial auto insurance policy. For instance, if you work at home, are a sole proprietor, or use your truck for work most often, you will benefit from this insurance.

If you use your personal information for business purposes, speak to your boss and the insurance company. They will be able to tell you the most effective method to get coverage and the steps to follow to obtain it.

We are helping you find the right insurance to fit your business needs. Contact Commercial Insurance Ottawa today for a commercial or business insurance quote at (613) 454-5640 or email us at