When you use your personal vehicle for work, the question arises whether you need a commercial auto insurance policy. The short answer is yes, you do. While sometimes a personal automobile is covered if it is primarily for personal use, some businesses prefer to be safe rather than sorry and have a commercial insurance policy written to cover the car when it is being used for a business purpose.
One reason for adding a commercial policy to the personal auto policy is to avoid disputes with one's insurance carrier should an accident occur when a vehicle is being used for a business purpose. Coverage could be denied if the insurance company concludes that the vehicle is being used primarily for business. There are Business exclusions on personal auto policies.
Another reason for a commercial auto policy is to cover the possibility of law suits against the business in the event of an accident. If you get into an accident using your vehicle to make a bank deposit, your insurance carrier may well cover costs if the car is primarily for personal use. However if the accident involves another party, he or she might choose to sue the business for further damages. A law suit that is not covered by a commercial auto insurance policy could wipe out the business.