Commercial use insurance vs business use insurance

Insurance companies offer a Business Use designation and a Commercial Use destination. As a member of Cardata’s vehicle reimbursement program, you need to have a Business Use designation on your vehicle insurance policy.

Business Use Insurance 

All Cardata drivers need the Business Use designation on their vehicle insurance policy in order to receive reimbursements. 

Employees who frequently drive their personal car for work require a “Business Use'' designation on their vehicle insurance policy. Those who have the Business Use designation are eligible for tax deductions and/or reimbursements, which, in your case, is facilitated by Cardata. 

You can add a Business Use endorsement to your personal auto insurance policy for an additional premium, depending on your occupation and the use of your vehicle. This endorsement expands the coverage you will receive. 

Please note that other common designations found on insurance policies for personal vehicles are “Pleasure Use” and “Commute to and from work.” Do not include these in your policy—doing so will expose you and your employer to added liability.

Business Use designation tips:

  • The “Business Use” designation is required for reimbursements. 
  • Do not list your employer as an ‘additional insured’ or as an interested party.
  • Do not include “Pleasure Use” and “Commute to and from work” in your policy. Neither are eligible for reimbursements. 

Commercial Use Insurance 

“Commercial Use” auto insurance is for those who use their personal vehicle to transport goods or people for a fee. Examples include hauling heavy equipment or tools, driving a vehicle with a company name on it, or towing a trailer ro conduct business. 

Generally, Commercial Use insurance requires higher coverage for liability insurance.

Vehicle types that would require Commercial Use designation include phone company vans, utility vehicles, municipal vehicles, and taxi cabs.