My mom and I are thinking of going into a small restaurant business here in Ohio. If we use my car for delivery, will I need to inform my insurance agent about it or purchase commercial vehicle insurance?

Shane

Columbus, OH

Yes, you will need to keep your insurance agent posted about this matter. Since you will be using the car for business reasons other than your private use, then you may be required to obtain commercial vehicle insurance. This is because your personal passenger insurance policy will not appropriately cover your car because of its livery use.

Livery use is defined as using the car to deliver packages such as food or newspapers for a certain fee or tip. Since the car will be used to assist in your restaurant operations, it is best to obtain commercial vehicle insurance. This is one business decision you will definitely have to make. You would not want yourself or any of your restaurant employees to end up in an accident and be denied of benefits later just because of this oversight. Aside from possible accusations of misrepresentation from your vehicle insurance company, there is the possibility that you might end up losing the business because of enormous amounts you will have to personally shoulder if the car gets in a car crash.

The best thing is to do some research on the Internet on vehicle insurance companies in Ohio. There are a lot of companies out there that offer reasonable commercial vehicle insurance.

I am just wondering if an auto insurance co will insure me if I use my vehicle for delivering newspaper?

Tony

Washington DC

Most insurers’ normal private passenger car insurance policies do not cover cars is being used for employment purposes such as to newspaper delivery for a fee. If you already have your own personal car insurance policy I suggest that you read over the information regarding the exclusion for the coverage if you are going to use your automobile for commercial purposes.

An automobile that is being used for delivery purposes is considered by a car insurance co as having more risks involved with it than an individual that uses that car just to and from their job, for personal errands, pleasure trips, etc. Because of this a personal car insurance policy will not usually provide coverages to a car that is being driven for commercial purposes and therefore require you to obtain a commercial car insurance policy for your automobile if you deliver newspaper.

If you want to get more information regarding the commercial car insurance policy I suggest that you contact your auto insurance co.