I’m trying to determine whether my auto policy should be classified as personal use or business use. I recently purchased a cargo van to transport tools and appliances to my rental properties, but it won’t be used very frequently. I’ve received conflicting advice from two different insurance companies. One suggested that since rental properties aren’t considered a business, my usage could be deemed personal, given that I’m simply moving supplies and equipment I own. However, the other company insisted that it should be classified as business use, as they regard rentals as a business for insurance purposes. Does anyone have insight on this matter?
Auto policy is this Personal use or Business use?
It sounds like you’re navigating a common confusion regarding vehicle insurance classifications. Generally, whether your cargo van is classified as personal or business use depends on how you primarily use the vehicle.
Personal Use: If you’re using the cargo van primarily for your personal errands and only occasionally transporting items for your rental properties, some insurance companies might allow you to classify it as personal use.
Business Use: On the other hand, because you’re using the van to transport tools and appliances for your rental properties, many insurers would likely classify this as business use—especially since it is related to generating rental income.
It’s important to note that different insurance companies may have varying criteria for what constitutes “business use.” Ultimately, for the most accurate advice, it’s best to talk to your insurance agent about how your specific activities are viewed by the insurer, and ensure that your policy adequately covers all potential risks associated with those activities. If in doubt, it might also be worth considering a business-use policy to avoid any potential coverage gaps.