The Difference between Personal and Business California Auto Insurance

When it is time to seek a quote for California auto insurance it is important to consider both personal and business uses of your vehicle. If you don’t answer questions properly or honestly and a claim arises it could be denied. There are different rate schedules for personal and business coverage. This is due to the fact that different risk levels apply to autos used strictly for personal use and those used in the course of business. It would be much better to have the additional coverage if you use your vehicle for business just in case an accident should happen. You might save a few bucks by piggy backing your personal coverage but in the end if an accident should occur, it will end up costing you more.

Personal Insurance Policies

There are many gray areas in life but California auto insurance is not one of them. The details are explained quite clearly in the policy. If coverage is written for personal auto use then that is what the company is providing coverage for. When events cause losses outside of the policy perimeters then the company is not going to pay for their loss. In the event an accident occurs when you are helping a friend move to a new apartment and some of his belongings are damaged the company is more then likely going to pay to have them repaired or replaced.

But let’s say that you make extra money on the weekends and you get paid to help folks move their belongings around town then the insurance company is more likely going to deny the claim based on business reasons. If you want to be certain that questionable personal activities are covered and you are protected while you engage in them it is important to talk to your insurance rep up front. Understanding your personal California auto insurance policy straight can save you a lot of problems and money later on down the road.

California Auto Insurance for the Self Employed

Being self employed makes no difference to a California auto insurance company and they will cover your self employment activities. When engaged in self employment activities many have clients in the car with them or sometimes merchandise. It would be important to have the proper coverage in place should an accident occur. If proper coverage is not in place and an accident should happen while you are making a delivery you may have to replace the damaged merchandise out of your own pocket. By simply having the correct coverage in place can eliminate this risk while you are engaged in self employment business.

Many self employed people have had claims honored by California auto insurance companies because their policies were in place at the time a claim was incurred. Having the proper coverage in place while you drive a client around to job sites could allow you to rest a lot easier because you have reduced your risk considerably. Not having the correct coverage in place is only increasing the amount of risk you will have to assume if something were to happen to them or to you. Talk to your agent to reduce your risk and get the proper coverage in place for your business.