Personal Auto Policy Voided Because of Business Driving

Personal Auto Policy Voided Because of Business Driving

Entrepreneurs utilizing personal vehicles for business may want to consider extra insurance protection. Making deliveries and service calls with personal vehicles may limit insurance coverage. This can be true for accidents while working or while on personal business. A local small business owner learned this the hard way. On the way to visit a friend there was a collision resulting in significant damage to the vehicle. Although her personal policy would generally cover the damages the insurance company denied the claim. Personal auto insurance policies extend to protect many small business owners yet in some cases, vehicles employed for specific commercial purposes may be excluded from coverage.

Most small business owners are protected under personal auto insurance policies. In some cases though, the commercial purpose for the vehicle may limit or forfeit coverage. For cars and trucks performing deliveries, equipped with commercial license plates, carrying passengers and emergency vehicles extra insurance coverage is necessary. In this case, the driver owned a small business selling heaters and a small part of that included deliveries.

The owner recently switched insurance carriers online to save money. Checking the box during the quotation process, they reported 30% of the vehicle mileage related to business purposes. Reviewing the insurance claim and the business services after the collision, the claim and repayment were denied. Shocked, the business owner learned the limits of personal auto insurance protection too late. This leaves the owner with a damaged personal and business vehicle, without compensation from the auto insurer.

Business owners mixing personal and business trips with the same vehicle may want to consider extra insurance protection. For more information on personal and commercial auto insurance policies contact an agent. We’re always keeping up with insurance-related topics that may impact health or wallet. For any questions about insurance, call anytime for answers.

Watch Out for Deer

 

Fall is here in full effect and Winter is on its way. With the red and golden landscapes, hot cider and crisp air comes an increase in car insurance claims due to animal-related crashes, especially from deer. November is the peak month for deer-related crashes nationally and Virginia leads with the highest number of occurrences. Because of this, the State Corporation Commission’s Bureau of Insurance encourages all drivers to be careful when driving, especially early or late in the day in areas where deer are present.

Virginia State Insurance Commissioner Jacqueline K. Cunningham reports deer mating season and associated movement patterns are the primary reasons for the increase in deer-related car accidents during the Fall season. She encourages Virginia drivers to watch out for any types of wildlife on or near the highway. Cunningham recommends contacting an insurance agent for specific coverage.

Insurance protection from damages related to accidents involving deer or other animals is optional, commonly grouped with other optional collision protection. This includes situations like flooding, fire, theft, and criminal damage. Bear in mind that basic plans for liability protection will not cover damages to a vehicle or occupants caused by collisions with deer or other animals.

At last half of all accidents involving deer occur during the last quarter of the year; the months of October, November, and December. During this time of year, the beautiful changing seasons draw more traffic to scenic wooded locations. At the same time, deer mating seasons leads to a marked increase in activity, while reduced daylight hours limit roadway visibility. All these lead factors and more lead to an increase of vehicles and deer sharing the same stretch of road.

According to the National Highway Traffic Safety Administration, more than 1.5 million collisions with deer are recorded each year. These lead to a shockingly-high 200 deaths per year, and more than 10,000 injuries of varying degree. These collisions cause monetary damages in excess of over $1 billion annually.

During the Fall, deer are going to be on the roadway. To help decrease the chances of hitting deer while driving, exercise caution while driving through wooded areas. If you spot deer, slow down and be prepared to stop if the deer enter the road. If a collision is unavoidable, stay in the proper lane decrease speed as much as safely possible to limit damage to the vehicles and persons involved. If a deer is struck, call the police and your insurance agent as soon as safe to do so. Take pictures of the crash site, vehicle damage and any damage to the vehicle. In the case a claim is submitted, these will likely help. Check for leaks, tire pressure, light function, and inspect for damage. If the car feels unsafe to drive,c call for a tow.

We’re always looking for good information about insurance subjects that may impact your health and wallet. Reach out any time for any insurance-related questions.