Company Car Insurance Inquiry
I drive a company car provided by my employer for both work and personal use. I currently don’t own a personal vehicle since I live in an apartment and find that I don’t need one. My driver’s app shows that the insurance is under a commercial fleet policy, but the personal coverage box is unchecked. This has been my sole vehicle for the last two years, and I have a couple of concerns that I’d like to clarify:
-
Am I still covered if I get into an accident while using the car for personal purposes?
-
Should I be worried about potential gaps in insurance coverage if my job situation or personal circumstances change and I need to buy a car?
Thanks in advance for your help!
It’s great that you’re being proactive about your insurance coverage with your company car. Here’s a breakdown based on your questions:
Coverage during personal driving: Generally, if your company car is insured under a commercial fleet policy, it may provide coverage for business use primarily. However, many commercial policies do include some form of personal use coverage, but it can vary significantly by policy and provider. To ensure you’re fully covered during personal driving, you should confirm with your employer or the insurance company directly. They can clarify if personal use is included in your policy and under what conditions.
Lapse in insurance when your job situation changes: When you no longer have access to the company car, you’ll need to secure your own insurance for a personal vehicle if you plan to buy one. It’s wise to start researching insurance options now, so you’re prepared. Coverage types, rates, and requirements can differ from commercial to personal policies, so understanding what you might need ahead of time can help you transition smoothly.
In the meantime, it might also be helpful to get everything in writing regarding your current coverage, especially before any changes occur with your employment. This way, you can safeguard yourself against any potential gaps in insurance. TIA!