Emergency transportation eg using your personal vehicle as a tow truck Renting out your vehicle to others.

Personal auto business use exclusion. When you are buying car insurance as an independent contractor it is important to understand that business use of your car generally isnt covered under a standard policy. Use of a your covered auto in an auto-related business selling servicing repairing etc. Here is a list of the most basic liability exclusions under a PAP.

This exclusion includes use of a vehicle for delivery of goods or services arising out of any business. The insured warrants that the vehicles. To be considered for this exception you will need to have business use coverage on your personal auto policy.

Owned and transported property. The rational behind this exclusion is that if a consumer is using a vehicle for business purposes the risk of being in an accident is higher than if you are simply using the vehicle to go to work. The business-use exclusion found in personal auto policies is valid and enforceable under Michigan law according to two recent court decisions.

Exclusions listed in a personal auto insurance policy vary depending upon what state laws permit and then the guidelines of your car insurance company. Your insurance company may also exclude other types of business use from personal car insurance policies. Use this checklist to help determine which type of policy fits your needs.

However the three remaining exclusions specifically relate to the business use exposure that is the subject of this article. Interpreting the business-use exclusion a federal district court applying Michigan law and the Michigan Court of Appeals issued opinions favorable to personal auto carriers doing business in the state. So this exclusion can be ignored when discussing food delivery.

Many people dont understand that and they may be driving without coverage if using a personal car for business. This exclusion does not apply if business use of the insured auto has been declared and a premium charged prior to the loss A similar exclusion applies to physical damage claims. The best way to determine if you qualify for an exception is to request a Letter of Non-Exclusion for Business Use from your Automobile Agent.