Most personal auto policies will not cover your car if it is used for business purposes. This is especially true if you allow employees to drive the vehicle or have business decals on the car.
MMG offers a comprehensive Personal Auto Policy (PAP) that covers liability, medical payments, damage from uninsured and under-insured motorists, and physical damage to the insured’s car. The PAP is standardized and has six sections.
Coverage for Your Vehicle
Personal auto insurance offers protection against legal liability, injury to you and your family members, and damage to or loss of your car. It includes coverages such as medical payments, uninsured/underinsured motorist coverage, property damage coverage, collision coverage, and general provisions.
Understanding the nuances of personal auto insurance becomes crucial when individuals aim to tailor coverage to their specific needs and preferences, allowing them to navigate the complexities of personal auto insurance effectively.
Liability coverage is mandatory in most states and helps pay for the other party’s medical bills, lost income, and pain and suffering when you are at fault for an accident. It also covers property damage, such as their vehicle, home, or fence.
Collision and other than collision coverage reimburses you for your car’s repairs if it is damaged in a collision with another vehicle or object, such as a guardrail or fence. It may also cover damage from hitting a deer and other hazards such as theft, fire, or hail. Some people purchase additional coverage, such as gap insurance, for the difference between what you owe on your car and its market value.
Coverage for Your Family
Personal Auto Insurance covers your family for bodily injury from accidents while traveling in your car or someone else’s. It also covers any passenger injured in your vehicle, even if not listed on the policy, and protects against economic losses caused by an uninsured motorist.
Many families keep teen drivers on their insurance policy until the children have graduated from college and can afford their coverage. In these cases, an insurance agent can help guide the discussion about when removing the teen driver from the policy is appropriate.
It’s crucial to remember that business driving—such as delivering pizza or running ride-sharing services—is not covered by personal auto insurance. However, some auto insurers offer supplemental insurance products to provide this coverage (at an additional cost). These specialized policies typically include liability and physical damage. They may also include uninsured and hit-and-run coverage.
Coverage for Yourself
A personal auto policy offers coverage for legal liability, injury to the insured or family members, and damage to or loss of a vehicle. It is a standard form policy to simplify buying and selling insurance for customers and insurers. The personal automobile policy is broken down into sections covering liability, PIP, medical payments, uninsured and under-insured motorists coverages, duties after an accident or loss, and physical damage. It is important to note that most personal insurance companies will not write a policy insuring vehicles if used for business purposes. This includes having business decals on the vehicle and employing employees to drive the vehicle for work purposes. This is something that a commercial policy is better equipped to handle.