How Your Business May Affect Coverage Under Your Personal Auto PolicyMany people have changed their work habits due to the Covid-19 Pandemic.  Some have transitioned from an office environment to their home, while others have either lost their jobs, quit, or decided to become self-employed.  Running your own business does have its share of incentives; after all, who doesn’t like the idea of working for oneself?  With all the changes that 2020 has brought, now may be the time to consider whether any of the changes you have made to your business and business auto may affect your coverage under your personal auto policy.

Who What, and Why?

Depending on your type of business you are now running, you need to consider the following questions:

WHO is your driving your personal auto/business auto?  If you are using your personal auto for work and nobody, other than the named insureds on the policy, is using your car on a regular basis, you most likely can keep the coverage under your Alabama personal auto policy.  Keep in mind that if you are using your personal auto for delivery or transporting goods, coverage does not apply under a typical Alabama auto insurance policy.  Also, if you have employees or others using your car in the scope of work, a typical Alabama auto policy will not provide the coverage you need.

WHAT is the vehicle(s) being used for?  Is your personal auto now serving as a business vehicle used to transport or deliver goods?  If so, a commercial auto policy will provide the coverage you need.

WHY are the vehicles being used and has the purpose changed due to a change in your business?  Consider whether you are using your vehicle for both business and personal use or just business.

Once you have given the above questions consideration, it is recommended you contact your local Alabama independent insurance agent to discuss the specifics so you can be assured you have the right auto insurance protection.

Some business professions are considered acceptable to use their personal vehicle for their business and still maintain coverage under their personal auto policy. Those include, but not limited to:

  • Real Estate Agents
  • Doctors
  • Lawyers
  • Consultants
  • Pharmaceutical Representatives
  • Sales Representatives

Do You Need an Alabama Commercial Auto Policy for Your Business Auto?

Vehicles used for the following professions (delivery and transporting of goods) may require an Alabama commercial auto policy:

  • Pizza/Food Delivery Drivers
  • Postal Carriers
  • Florists
  • And More

Vehicles weighing over 10,000 pounds are excluded for coverage under a typical Alabama personal auto insurance policy and would require a commercial policy.

Vehicles used for “transportation for hire” are typically excluded for coverage under a typical personal auto insurance policy and would normally require a commercial auto policy.  Keep in mind; however, there are exceptions to the rule so if you have questions regarding transportation for hire, contact us at Burkett & Associates and we will assist you with questions and concerns.  Some examples of transportation for hire that do require a commercial auto policy include:

  • Daycare Drivers
  • Taxi Drivers
  • Limousine Service
  • Elderly Transportation
  • And More

Burkett & Associates Insurance Agency is here to assist you with all your personal and business auto insurance needs.  If you have questions or concerns about whether you currently have the right Alabama auto insurance protection, call us today at 256-704-7400.