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November 17, 2014

Using Personal Insurance For A Work Vehicle Can Be A Costly Mistake

As a small business owner, looking for ways to lower costs is always a top priority. Using one vehicle for both personal use and work is simple way to save a great deal of money. So it is understandable that these same small business owners are tempted to insure their vehicle on their personal policy to save some money. The rationalization that the vehicle is “also” their personal vehicle as well as their work vehicle make sense; so why not put it on their personal policy? The reality is that your insurance company does not see it that way and will likely not honor your claim in the event of an accident. This could be a very costly mistake that will far exceed any savings on your premium you might gain.

So how do you know if you require a commercial auto insurance policy?

• Do you pickup or deliver goods related to your work?
• Is your car leased or owned by your business?
• Do coworkers or employees ever drive your vehicle?
• Do you have any special equipment installed on the vehicle to support your work?

These are just a few of the red flags that may result in a denied claim. If you have questions regarding your auto insurance or would like to get a quote for a commercial policy, give us a call today at Kaplan Insurance.