Not everyone who owns a business has commercial auto coverage. But, if you are a home business owner and use your vehicle to deliver goods and services to your customers, then you would only need personal auto coverage for your vehicle. Choosing the right personal policy for your coverage needs depends on a few factors.

If you are not driving another person around from place to place, then your personal auto policy would be sufficient for your home-based business. If your home-based business is a livery, then you would need a commercial auto policy tailored to your needs so that you could protect you and your assets. Even if you go on a vacation, other drivers and family members will be covered even in an accident with a commercial auto policy. If one of your employees is hurt in an auto accident, the commercial coverage will not cover the hurt individual, that is covered by worker's compensation.

The of commercial auto coverage for your home-based business is calculated similarly like your personal auto policy. The number of miles that you drive, who is driving the vehicle, driving record and your claims history will have an impact on your rate.

You need to make sure that your limits of liability are enough to cover your personal assets and your business assets. If you are in an accident, the other party involved can sue you to cover their medical as well as vehicular costs. To make sure you are covered properly, high liability limits like $250,000 and $500,000 are recommended or bodily injury. Property damage coverage is recommended at $100,000.

Many home-based businesses haul equipment from job site to job site. Lawn mowers, power painters, power washers, ladders, landscaping equipment, etc., need to be covered. If you already own a home-based business, then you should have liability coverage and property coverage under a BOP, which stands for Business Owners Policy. If you permanently affix equipment to your vehicle, then you would need to increase your coverage on your vehicle since the generator won't be covered under your BOP.

Whichever policy you choose, personl auto policy or commercial policy, you'll be protected just like regular auto insurance.

Many who use their vehicle for work may wonder how cost efficient this practice is. That depends on the type and age of the vehicle a person has, what kind of work they do, and whether their employer lets them write off costs such as mileage. For instance, it may make more sense for a person who drives a diesel truck to use public transportation rather than pay eighty dollars at the gas pump. However, if they are employed in a job that requires a vehicle with such strength, then it would a worthwhile price to pay. This is especially true if the employee has an expense account.

If the vehicle in question is any number of the models of cars offered in the United States, it will likely get an average of twenty miles per gallon. The efficiency of using one’s own car would then depend on their line of employment. If their work involves some sort of delivery service, it is almost guaranteed that their employer will pay for the mileage they use on the job. One question the vehicle’s owner has to ask themselves if how much wear and tear they are comfortable putting on their car. Is it reliable? Will it last for quite some time? If yes, the benefits of using one’s own car will most likely outweigh the annoyance of having to arrange for alternative transportation.

The last consideration, which was already touched upon, is whether the price of mileage will be taken care of by one’s employer. If they work in a job that is based around transportation, the chances are high that a person will not have to pay for their own gas mileage. If, however, a person is only concerned about the cost of commuting to and from work, they may have to make other arrangements.

When it comes down to it, a person has to take the aforementioned key factors into account. Only when each one is measured in terms of its advantages and disadvantages can it be determined whether it is best to use one’s own vehicle for work.