This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 tips for buying car insurance for the self-employed





Along with the many other steps to take when starting a business, here's one that many self-employed folks neglect: checking to make sure they have the right car insurance coverage.

Just because your business is part-time or operated out of a home office on a shoestring budget doesn't mean a personal auto insurance policy is enough. There are different types of car insurance that you should know about to be sure you have sufficient coverage.

Here are five coverage tips to make sure you have the protection you need:

1. Don't lie to the car insurance company.

A personal car insurance policy typically excludes coverage for some types of business use, other than commuting to an office, so you need to check the policy and let your insurer know how you're using the vehicle.

"Otherwise the insurance company could deny a claim and then cancel your policy if you rely strictly on a personal auto insurance policy and use your vehicle for business purposes," says Insure.com consumer analyst Penny Gusner.

That goes for part-time businesses, too, says James Kuryak, principal of Niagara National Insurance in Buffalo, N.Y.

In his region, for instance, a lot of folks make extra money in the winter by attaching plows to their pickups to clear private roads. Generally vehicles with equipment attached to them require commercial insurance.

2. Determine whether a business-use endorsement on your personal policy is necessary and would provide enough coverage.

A business-use endorsement is an addition to a personal car insurance policy. It's geared toward professionals such as real estate agents, lawyers or consultants who drive frequently for business, but aren't using a car in ways that a personal policy would exclude. Adding the endorsement boosts the premium, but a personal policy with a business use endorsement is still usually less expensive than a commercial car insurance policy.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs