Many people use their own vehicle for work: a sales rep visiting clients, a tradesperson carrying tools or a driver doing deliveries. Auto insurers price policies on how a vehicle is used, so a change in use is something to report.
Categories of use
Policies typically distinguish between:
- Pleasure use. Personal driving, with no commute.
- Commuting. Driving to and from work.
- Business use. Driving as part of the job, such as visiting clients or carrying goods.
- Commercial use. A vehicle used mainly for business, which might need a commercial policy.
Terms vary by insurer, so ask which category applies to you.
Gig and delivery work
Driving for a ride-sharing or delivery platform is a special case. Personal policies commonly exclude or limit coverage when you carry paying passengers or deliveries. Insurers have created products designed for this, and platforms may provide their own coverage for certain periods. The coverage can differ depending on whether you are waiting for a job, on your way to pick up or carrying a passenger.
What can go wrong
If you are in a collision while using the vehicle in a way your insurer did not know about, the claim can be reduced or denied, and you could be responsible for the costs yourself.
Other considerations
- Tools and equipment in the vehicle are not usually covered under an auto policy, even if they're stolen from it. They may need a separate policy.
- If an employee drives for your business, a commercial policy or specific endorsement might be required.
Questions to ask
- Which use category fits how I use my vehicle?
- Am I covered while driving for a platform, and at which stages?
- What does the policy say about tools and goods in the vehicle?