Do you have signage on your vehicle? Here’s what YOU need to know!

Although signage on a vehicle may indicate that it is being used for business purposes, signage does not determine the classification of the vehicle.  The broker or insuring company would typically determine the correct use of the vehicle during the quoting process. 

Making sure your vehicle is being properly rated is very important regardless of signage. If you’re using your vehicle for business purposes but fail to disclose the correct use of the vehicle to your broker, this could result in a potential claim being denied.

Here’s an example to help illustrate this point; 

A stay-at-home mom has a small home-based business baking sugary sweets. She uses her vehicle to deliver her homemade treats to local businesses. Her vehicle is only being rated as personal use. If she were to be involved in an accident while commuting to a location to deliver her baked goods, the insurance company may deny her claim seeing the vehicle wasn’t properly rated. In this case, her vehicle should have been rated for occasional business use. The annual mileage used for business purposes will also determine the correct classification for business use of the vehicle.

Contact your local broker for any questions concerning personal or business use on your vehicle.