What Business Owners Should Know About Personal Auto Insurance

In April 2007, Laura Anderson was involved in a collision in San Diego, CA.  She was rear-ended by a pick-up truck owned by a licensed plumbing contractor.   The contractor, who was found to be at fault, was driving a truck with his business name and contractor’s license number painted on the side.  Although he sometimes used this vehicle for personal use, he mostly used it for business.  When contacted by the claims adjuster, he explained that he was on the way from one jobsite to the other.  The insurance carrier denied the claim because the contractor’s personal auto policy excluded use of vehicles for commercial purposes.  It took over three years for Ms. Anderson to recoup her losses from the “uninsured” contractor. 

Many contractors and business owners across the country carry personal auto policies on vehicles not realizing that they might be driving around without the right coverage.  So how can you know if your policy covers you?  The answer is not that simple.  Not all personal auto policies are the same.  The one way to be absolutely sure you’re covered properly is to get a commercial auto policy that allows for personal use. 

The experts at Orr & Associates can help you evaluate your auto insurance policy (personal or commercial).  We’ll show you what you need to know and where you need to go to fit your auto insurance needs.  For more information contact Tarah Gruber at 619-487-0376 or Tarah@redhotinsurance.net.  Or visit www.redhotinsurance.net.