A common misunderstanding among our clients regarding insurance is the mistaken belief that auto insurance policies are one size fits all, and it’s simply not true. As a basic example, there are personal and commercial auto policies. Each policy has a specific rating and only covers certain types of activities that are specific to that policy. Many times things people believe are covered by one policy are really covered by another and they don’t have. Many insurance companies will not cover a person using their personal vehicle for business activities or commercial reasons. A personal auto policy is for personal auto use and a commercial auto policy is for when someone is using the vehicle for business use.
For example, if a person is using a vehicle that’s insured on their personal auto policy for business activities like running their own paint company or doing their own lawn care business, that would mean they are using their personal vehicle for work purposes. It would be wise for that person to call their insurance agent to find out if they are actually covered for those activities.