Do You Need Commercial Auto Insurance for Your Side Business
Key Takeaway
If you use your personal vehicle for business purposes—even part-time—you may need commercial auto insurance. Standard personal policies typically exclude business use, which means your side hustle could be exposing you to serious financial risk. Getting the right coverage helps protect your business, your vehicle, and your future income.
What Is Commercial Auto Insurance and Who Needs It
Commercial auto insurance is designed for vehicles used for business operations. Whether you own a small business or run a side hustle, this coverage helps protect you in ways that personal auto insurance does not.
You may need commercial coverage if you:
Deliver goods or services using your vehicle
Drive to multiple job sites each day
Haul tools, equipment, or inventory
Transport clients or employees
Have vehicle signage or branding
Allow others to drive your vehicle for business purposes
Examples include landscapers, mobile notaries, contractors, caterers, and freelance delivery drivers. Even if your vehicle is personally owned, regular business use often requires a commercial policy.
What Commercial Auto Insurance Covers
Commercial auto insurance offers broader and more business-specific protection than personal policies. Coverage typically includes:
Liability insurance for property damage and bodily injury
Collision and comprehensive coverage
Medical payments and personal injury protection
Uninsured and underinsured motorist coverage
Hired and non-owned auto liability
Coverage for permanently attached tools or equipment
Loading and unloading coverage
This type of policy is crucial for small business owners and side business operators who rely on their vehicle to generate income or support daily operations.
Why Personal Auto Insurance May Deny Claims
If you get into an accident while using your car for business tasks, your personal policy may not cover the damages. That includes tasks like delivering food, transporting tools, or meeting clients. Insurance companies often classify these as commercial uses and may deny the claim altogether.
What About Rideshare and Delivery Drivers
If you drive for Uber, Lyft, DoorDash, Amazon Flex, or Instacart, your vehicle use is considered commercial. These companies may provide limited insurance, but coverage typically applies only during active rides or deliveries—not while waiting for jobs or driving without the app on. You’ll likely need a rideshare endorsement or a commercial auto policy to fill the gaps.
Do You Need a Business-Owned Vehicle to Qualify
No. Commercial auto insurance is based on how the vehicle is used, not who owns it. Even if the car is registered under your name and used occasionally for business purposes, you might still need a commercial policy to ensure full protection.
How Much Does Commercial Auto Insurance Cost
Premiums vary based on location, driving history, vehicle type, and business use. While it may cost more than personal auto coverage, the added protection is well worth it—especially if your vehicle is central to your income.
You can save money by bundling with other policies like general liability or business insurance. Andrade Mejia Insurance Agency can compare quotes across top carriers to help you find the most affordable and comprehensive plan for your needs.
How to Know If You Need Commercial Auto Insurance
Ask yourself the following:
Do I drive for business purposes more than just commuting?
Do I transport goods, tools, or equipment?
Do I have employees or contractors driving my vehicle?
Is my car branded or wrapped in business signage?
If you answered yes to any of these, it’s time to speak with an independent insurance agent.
How to Get Covered
Make a list of all business-related vehicle uses
Collect your current policy and vehicle info
Contact Andrade Mejia Insurance Agency for a coverage review
Ask about endorsements or custom options for your line of work
An experienced agent can guide you through the process and match you with a commercial auto policy tailored to your business activities.
Final Thoughts
Whether you’re a full-time entrepreneur or running a weekend side hustle, using your car for business purposes comes with added risk. Personal auto insurance may not give you the protection you need.
Get peace of mind by reviewing your coverage with Andrade Mejia Insurance Agency. Our team will help you understand your options and make sure your policy protects every mile of your business journey.