Understanding Distinctive Types of California Car Insurance

It is important to make clear distinctions when purchasing California car insurance. Whether your vehicle is going to be used for business or personal use is an important distinction. Even part-time business use can change the criteria of your policy. If you are doing business with your personal auto you should be certain that the policy has a rider to cover you in case of a claim or accident. Without proper coverage the driver could be exposed to major claims of liability and risk.

California Car Insurance for Business Purposes

California car insurance companies will cover automobiles used during the course of business activities but it needs to be disclosed at the time the policy is purchased. Even if you are only doing business a small fraction of the time it is wise to let your agent know and have the proper coverage in place. Should you be involved in an accident without the proper coverage in place you could end up spending thousands of dollars out of your own pocket to have your car repaired or you may have to pay the medical expenses for another driver that is injured during the accident.

The most overlooked distinction for deciding on the right kind of California car insurance coverage is the weekend entrepreneur who makes a few bucks transacting business. It doesn’t seem to be a problem that they are using their personal automobile to do business until an accident occurs. Then a claim is filed it is revealed that you were doing business with your personal auto and the claim is denied. Guess who will have to pay the claim? Always be sure to check with your insurer to make certain you are in fact covered under your present policy so that if an accident should happen and a claim filed you are in fact adequately covered.

Personal Coverage

The distinction that a California car insurance policy is a personal policy may seem to be a minor detail but to insurers it is not so minor. Claims arising from personal automobile use are much different in scope then those claims made while transacting business. If you use your automobile to transact business for your company made sure that they carry a policy that will cover you in case of an accident. If you periodically transport business clients in your personal automobile you want to be sure coverage is in place should an accident take place and a claim be filed.

Understanding the difference between your personal California car insurance policy and business coverage can save you a lot of problems right up front. It is always best to check out the types of coverage your policy allows and which claims they don’t before an accident and not after the fact. If you do use your automobile to do your employers business you may also want to check what their policy covers and what it does not. Your employer should provide the coverage or pay you to provide the coverage. Driving around in your automobile without the proper coverage in place only opens you up to an increased risk of liability.