I wonder if someone could explain what constitutes “business use” of your automobile for insurance purposes. If a person is self employed and drives his or her car to work every day (like everyone else) why would insurance companies consider this to be business use and want to charge a premium? I can understand if your vehicle is for hire or if you make deliveries, but if you simply drive to work it makes no sense.

Thanks for your help!

If you are self employed, do you only work at a office ?
As long as you don't stop to pick up supplies, don't use it for any business usage, you can try and make a argument, but if a auto is used for any busienss usage, they can even deny the claims latter if you have a wreck

Thanks Chuck... Yes I do understand, and believe me, I didn't ask the question with the intent of formulating an argument against my insurance company. On the contrary, I want to be sure that I am not underinsured. But when a customer service rep asks "Do you use your vehicle for business?" and I ask him or her what exactly does that mean? They don't know how to answer the question. So, I'm just wondering what criteria they use to classify your automobile as a "business use." Is it simply because you report your income on Schedule C? And maybe take a milage deduction on your tax return? It seems like the answer is always vague. There must be a clear definition somewhere in the insurance industry of what exactly constitutes "vehicle used for business." If you do a single job during the year and take a milage deduction for it, surely you don't need to change your insurance policy?

Business use means using the vehicle in the conduct of your business. Commuting to and from a office or store doesn't constitute business use. But driving to visit clients would be.

There are some fine lines, for example, one morning I was going to pick up some lumber for the office, I had a wreck, they denied my payment because it was "work"

Had I only been on the way to work, OK. But the problem with people that own their own business how often do you stop and do business work or go pick things up.

Thanks for the input Scott and Chuck. I've been doing more research and I think there really is no clear cut answer. It all boils down to how much risk you are willing to accept. It is becoming clearer to me that ANY business activity with your vehicle will be excuded from coverage. Even if I only use it occaisionally, I will essentially be without coverage for the duration of those instances. I left a message with my agent to call so we can discuss. Thanks for your help!

Thanks for the input Scott and Chuck. I've been doing more research and I think there really is no clear cut answer. It all boils down to how much risk you are willing to accept. It is becoming clearer to me that ANY business activity with your vehicle will be excuded from coverage. Even if I only use it occaisionally, I will essentially be without coverage for the duration of those instances. I left a message with my agent to call so we can discuss. Thanks for your help!


In NYS there is a clear answer - commuting (to and from) is not business use; anything else involved with employment and/or business IS business use. For example, as Fr Chuck said, running out to pick up supplies, drop something off, visiting a client. I have seen the business/employer sued after the employee "runs out" and does not have business insurance, carrier denies coverage.

Ask your insurance agent about occasional business use. Some companies have this category, others do not.

And you aren't only putting yourself at risk if you do business errands without proper and/or adequate insurance, you are also putting the general public at risk.