If you work at a company that allows you to use the company car and you also use your personal car for business purposes, chances are you have potential gaps in car insurance coverage.

To make it clearer, consider you are driving your own car for some business purposes. In this case, you should keep in mind that the company you work for may have protection from the company’s business car insurance policy. However, though, it is often the case that the policy only covers liability. In addition to that, most of the time, the company’s car insurance policy will not even be valid until you have run out of the limits on your personal car insurance policy. This is usually known as “excess coverage” to the people in the insurance business.

With that being said, it is recommended that you try to find out what coverage, if any, is available for you through your company’s policy. If you do that, you will know which insurer – yours or the company’s – that you need to call in the event you find yourself in an accident while you are on your company’s business.

The next thing you should know as well in case you use your personal car for business is that chances are your personal car insurance policy is adequate to cover for the costs incurred. Keep in mind that when you use your car for business, you will have to pay some allowances with regards to visiting clients, business trips and so forth.

However, what if you use your car commercially as well? In that case, what you need is usually a business car insurance policy. The reason is pretty simple. If you use your personal car to deliver stuffs, for example, your personal car insurance agent will usually reject your claim should something go wrong.

But what if you do not possess a car and count on your company’s car? Well, in case you try to make use of the company car for both pleasure and business, the car may become an insurance problem. Without a car, chances are you do not have any motor insurance policy protecting you. Therefore, if you use the company car to drive you somewhere and it has no relations to your business, you will have to prepare yourself for the high costs that you will have to pay if anything goes wrong.

Fortunately, there is such a thing as the non-owned personal car insurance policy. This kind of protection is particularly useful when you rent a car for your trip. With the non-owned personal motor insurance plan, it is not only you that will be covered but also the car you rent. Otherwise, you may need to buy protection from the car rental company. Unfortunately, it is often very expensive.

After all being said, you need to always keep in your mind that borrowing the company car for pleasure may cause you to have coverage gaps. This applies even if it is your spouse or your children that use the car for their pleasure instead of you.

Author Bio: Car Insurance

Category: Automotive
Keywords: personal car insurance,business car insurance,motor insurance,commercial car insurance costs