How Vehicle Use Affects Car Insurance

There are multiple types of vehicle use classifications when it comes to car insurance. Insurers take vehicle use into consideration for determining premiums and even eligibility for coverage. Vehicle use is classified by the employment of the person(s) driving it or even the type of vehicle. For example, a commercial vehicle such as a dump truck will automatically be listed with commercial use and cannot be listed as personal use.

Following are the different types of vehicle use classifications:

• Personal or Pleasure - This type of use is for vehicles which are not used for commute to and from work or school and are used solely for pleasure or personal use such as driving to the store. Also excess household vehicles are classified as pleasure use and usually can be listed with low mileage.
• Commute – This type of use is for vehicles used to drive to and from work or school but not for occupations that require the use of the vehicle during work. This type of use is the most common use and does not have a surcharged premium.
• Business - This type of use will generally have a bit of a surcharge and is for vehicles used during work but not to carry tools or material. One example is a real estate agent who uses the vehicle to drive to different properties and locations during a work day. Another example may be an inspector which drives to multiple locations during work hours.
• Artesian – This would be for drives with professions that also require vehicle use such as carpenters, electricians, plumbers and handymen. They would generally carry light portable tools and equipment but not heavy machinery or building material. Artesian use would also generally have a surcharge in premium and can be added to a regular insurance policy.
• Commercial – This is the heaviest type of use and normally requires the purchase of a commercial policy. This type of use is usually for commercial vehicles or modified vehicles such as trucks or vans. This would normally be the most expensive type of policy due to its use. There are still unacceptable types of commercial use based on each carrier’s guidelines.

It is very important to list the proper use when purchasing a policy. Vehicle use is used by insurers for different purposes such as providing auto insurance quotes and even eligibility of coverage. Improper notification of vehicle use can result in declination of coverage and even policy cancellation.

If one has a current policy and changes use due to changes of employment etc, it is important to notify the auto insurance companies in order to update the use.

It is best to find an insurer that will accept your particular use and provide the coverage you need for a reasonable rate. OnlineAutoInsurance.com works with over a dozen leading insurers and allows consumers to complete online car insurance comparisons simply by completing a quick questionnaire.