If you use your personal car for anything related to work, you need to understand the potential implications if you get into an accident. Whether the accident is your fault or not, insurance policies are strict regarding personal and business use. These distinctions can determine whether your claim gets paid or dismissed. If you assume your standard insurance policy covers you no matter what, that might not be the case.
Cars used for business purposes don’t need to be an official company vehicle. You can use your personal car for business purposes, but getting into an accident can be costly if you don’t have the right insurance policies.
What counts as work?
What qualifies as using your car for business purposes generally amounts to things your employer benefits from, including:
· Running errands for your employer. For example, picking up or dropping off supplies and doing bank runs to get change or make a deposit.
- Driving between job sites. If your job requires you to travel between locations during the workday, that’s business travel time.
- Driving for rideshare and delivery services. Uber and Lyft, for example, are considered business use.
What doesn’t count as business use is commuting to and from work, unless you’re performing work duties during your commute. Unfortunately, many employers dispute workers’ comp claims filed by employees who were hurt while running errands for the company. If you’ve been hurt in a car accident while driving for your employer, contact an attorney right away to discuss your case.
Your personal car insurance might not cover you
If you got into a car accident while using your car for business purposes, your personal auto insurance policy might not cover you. Most personal policies contain exclusions for business use, especially transporting goods or people for money. However, this exclusion can sometimes apply to running errands for your boss.
It’s not enough to file a claim and omit the fact that you were working. Insurance adjusters will dig into every small detail, including receipts and GPS data, to determine if you were working. Getting caught can also void your policy. If you didn’t disclose that you’d be using your car for business when you bought your policy, the insurance company might cancel your policy on the grounds that you misrepresented your risk profile.
Your employer’s insurance might not be automatic
Your employer’s insurance coverage might step in, but it probably won’t be automatic. There’s a chance you’ll need to make some serious effort to get your employer to cooperate. If they have commercial auto insurance that covers employees who drive, you could be in luck. If not, expect some resistance. Not all employers carry adequate coverage, especially small businesses with minimal funds.
To avoid the stress of disputes and delayed claim resolution, contact a personal injury attorney to learn about your options and proceed with an experienced advocate on your side.
You should file for workers’ compensation
If you get hurt driving for work, you should file a workers’ compensation claim as soon as possible. You can recover compensation for your medical bills and some of your lost income. However, it won’t cover non-economic damages like emotional distress.
To pursue those damages, you’ll need to file a personal injury claim. You can file both claims at the same time, but it’s critical to talk to a lawyer before taking any action. If you end up recovering damages from a third party, the workers’ comp insurance company might ask you for reimbursement.
When coverage is denied
There are a handful of situations where coverage typically gets denied. For example, if you didn’t disclose business use of your vehicle to your insurer, you used your car for delivery without proper coverage, your policy limits are too low, or there’s a dispute over whether you were actually working.
Insurance companies are always looking for technicalities to deny claims so they don’t have to pay out. The best way to avoid mistakes and get a clear picture of your situation is to hire a lawyer.
Protect your future
Now is the time to get all your ducks in a row. If you drive regularly for work or you’re self-employed, make sure you have all the required insurance policies. If you don’t want to get commercial coverage and driving isn’t part of your normal duties, ask your employer to get someone else to run their errands.
Sometimes finding out how things work the hard way is the easiest way to protect yourself in the future.