Insurance Liability: Using a Personal Vehicle for Business Use

It may not seem like a big deal for you to use your personal car or truck on the job. But if you cause an accident, it can be financially devastating if you are not protected.

Depending on whether your personal auto insurance policy contains a “business-use” exclusion, your liability insurance may not cover the car accident and you may be personally liable for damages to anyone who was injured in the crash.

“Business-use” exclusions are included in most personal auto insurance policies in Michigan and allow the insurance company to deny liability coverage for accidents caused by the insured person while using her personal car or truck for business purposes.

Under Michigan law, an automobile insurance company can set its premium rates based on whether an insured person intends to use her vehicle for business purposes. If an insured person reveals that they plan to or may use their vehicle for “business purposes,” then the insurer may charge a higher premium on their personal auto insurance policy.

Your best protection is to contact your insurance agent and discuss how you use your vehicle and together you can both come up with a solution to ensure you are protected in the event of an auto accident.

Michigan Auto Law helps people seriously injured in Michigan auto accidents with five offices throughout the state, including one in Grand Rapids.  For more information on protecting yourself visit our Grand Rapids Local Resources page.