SHARP HOME

Thursday, 21 May 2015

The difference between Commercial versus Business use for your vehicle



Alberta car insurance policies can be a bit of a grey area when it comes to business versus commercial use. The best way to know what you need coverage for is to call your insurance provider and ask the right questions. That last thing you want is to be denied an insurance claim because you were not covered properly. This can and does happen.


What is business use?



Business use is basically one step further from a regular work commute that most Alberta drivers have on their existing policy. You would still technically have your personal auto insurance policy, but instead of commute kilometers, you would be rated for annual business kilometers. The following list would put you under the business category instead of work commute use only.

  • Sales representative: door to door sales with samples only, no goods for compensation, to be carried in the vehicle.
    •  Ex: Avon representative, interior designer, beauty consultant, etc.

  • Driving to different locations every day rather than one work address:
    • Ex: Music teacher, therapist, consultant, health care provider, architect, claims adjuster etc, (no instruments or goods in vehicle).


What is commercial use?



If you are using your vehicle for the below mentioned purposes, you would need a commercial auto policy, instead of personal auto policy as the purpose of the vehicle, and the nature of the work involved, would be categorized as a commercial risk.

  • Carrying tools and equipment for work purposes
    • Ex: Welder, surveyor, engineer, geophysicist
  • Carrying goods for compensation:
    •   Ex: Pizza delivery, door to door sales (Cutco, etc.).
  • Taxi or tour vehicle

  • Driving on leased lands:
    • Ex: Welder, surveyor, engineer, oil fields worker.



This is a rough guide for business versus commercial use. For more information or for a quote on insurance for your vehicle, contact us today. We have team of brokers who specialize in business and commercial auto insurance.


9 comments:

  1. The next time I read a blog, I hope that it doesnt disappoint me as much as this one. I mean, I know it was my choice to read, but I actually thought youd have something interesting to say. All I hear is a bunch of whining about something that you could fix if you werent too busy looking for attention. Cheap auto insurance in Houston

    ReplyDelete
  2. Personally, I found this article helpful and informative. While it's not the actual subject I was searching for (I was curious when and if you should hyphenate 'business use'), this article taught me about something I was unaware before.

    Thank you for your blog.

    ReplyDelete
  3. I mean, while you are banking upon the best infrastructure, décor, employees, equipment and machines, it is also necessary to make arrangements for the unexpected crisis situation. Group healthcare

    ReplyDelete
  4. Then you will be left with the daunting task of ditching your old vehicle. Selling your car for instance would require that you advertise, entertain possible buyers and expose yourself to security issues in the process.https://www.a1autotransport.com/freight/

    ReplyDelete
  5. A vehicle donations program mainly deals with the transfer or donation of old vehicles to charitable institutions. Basically, these charitable institutions who have vehicle donations program do not handle the car donation transactions themselves. car transport

    ReplyDelete
  6. This can put the business at a disadvantage where there is a dispute over liability or settlement. liability insurance

    ReplyDelete
  7. Vehicle shipping costs differ relative to different means through which the shipment is meant to be done which could be through the sea, air or by land.Learn More

    ReplyDelete
  8. That last thing you want is to be denied an insurance claim because you were not covered properly. northhoustonplumging

    ReplyDelete