Is It Okay to Use Your Work Vehicle for Personal Reasons? 

Using a company vehicle for personal errands might seem harmless, especially if the car is sitting idle after hours, but it’s not always as straightforward as it seems. Whether an employee is grabbing groceries or heading out for a weekend trip, personal use of a work vehicle can raise questions about liability, insurance coverage and company policy.

How Does Commercial Auto Insurance Apply to Personal Use of Business Vehicles?

Commercial auto insurance is designed to cover vehicles used for business purposes. Policies can often cover costs arising from accidents, liability for other parties’ losses and damage while the vehicle is being used for work-related activities. Whether coverage also applies to incidents occurring during personal use depends on the policy’s terms and the employer’s guidelines.

Companies may allow limited personal use of business vehicles, but should do their due diligence to make sure their commercial auto policy maintains coverage in such situations. Others may require employees to carry a personal auto insurance rider. Employees and businesses alike should be fully informed of coverage details and permitted uses.

Are There Scenarios Where My Coverage Won’t Apply During Personal Use?

There are indeed certain situations where commercial auto insurance may not financially protect drivers and vehicles being used for personal reasons. Consider the following examples:

• Unauthorized use—If an employer hasn’t explicitly permitted personal use, incidents may not be covered.
• Family or friends driving—If an employee allows a nonmember of their organization to drive a company vehicle, even briefly, it can void coverage.
• Out-of-state or long-distance travel—Some policies restrict coverage to certain geographic areas or mileage limits.
• Driving under the influence or recklessly—Even if personal use is allowed, illegal or reckless behavior will almost always void coverage.
• Using the vehicle for side jobs—If an employee is using a company vehicle for freelance work, coverage likely won’t apply.

Learn More

Contact De Anda Insurance today to discuss commercial auto insurance and how it may or may not apply to personal use of company vehicles.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.