Can I Put My Company Car on My Personal Auto Policy? Here’s What You Need to Know
“Do you own a business and wondering if you can insure a company vehicle through your personal auto policy? You’re not alone—and in this video, we’re going to help you avoid some costly mistakes by breaking down what you can and cannot do.”
Hi, so today we are discussing a question from a business owner named Jason. He asked, “I own the company; can I put my company car on my personal auto policy?” He went on to explain that his personal auto insurance rates were about 20% lower than those on a commercial insurance policy. So, let’s simplify the issues and help you make an informed decision when it comes to insuring company vehicles.
Why Personal Insurance Policies Don’t Work for Commercial Risks
Here’s the thing: most personal policies exclude company-owned vehicles that are used regularly by you or your employees. That’s because personal coverage isn’t designed for business risks. So, even if you’re the business owner, your personal policy won’t cover an accident in that vehicle… leaving you dangerously exposed.
What Coverages are Missing?
Yes, there are gaps. When you drive a company car off the clock, you might be missing:
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Liability protection if you cause damage
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Coverage for the vehicle itself if it’s damaged
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Injury protection for yourself or passengers
Even worse, if the business policy excludes personal use, you might have no coverage at all.
Options to Cover the Gaps
Option 1: Add a Personal Endorsement
One fix is adding an Extended Non-Owned Auto endorsement to your personal policy. This is an inexpensive add-on, often $25 to $35 a year per driver. This gives you liability coverage when using a company vehicle for personal errands. But remember: it won’t cover damage to the car itself.
Option 2: Hired and Non-Owned Auto Coverage (HNOA)
Next, consider Hired and Non-Owned Auto coverage (HNOA). This is added to your business’s commercial policy and covers liability when employees (including you) use company or rented vehicles for business purposes. Still, it’s limited to liability, so you’ll need separate coverage for damage to the vehicle.
When You Need Full Commercial Auto Insurance
Okay, so when do you need Full Commercial Auto Insurance? Well, if the vehicle is titled in your name but primarily used for business, you need a commercial auto policy. This is the only way to get full coverage, both personal and business use, with the proper liability limits in place.
Still Not Sure? Let Us Help!
Still not sure what coverage you need? Reach out to our commercial specialist here at Trailstone. We will help you understand how to structure your coverage the right way for the best price. We’re here to help.