Hi, I’m Jeff Shropshire with Shropshire Insurance of Texas.

Today, I want to talk about a common question we get from both personal and commercial insurance clients:
How does insurance respond if you use your personal vehicle for business purposes?

Let’s start from the individual’s perspective.
If you use your personal car while performing duties for your job, your personal auto insurance policy is the one that applies first. Your personal insurance provides the primary liability coverage if you cause an accident that injures someone or damages property.

If your own vehicle is damaged and you have comprehensive and collision coverage, your personal insurance will also cover the repairs. The employer’s insurance does not pay for your vehicle or your liability. Remember—insurance follows the vehicle, not the driver’s employer.

That’s why it’s important to let your insurance agent know if you’re using your personal car for business purposes. They can make sure your vehicle is properly insured and that you have adequate liability limits in place. The same rule applies if you’re volunteering and transporting people—your personal insurance is still primary for both liability and physical damage.

Now, from the employer’s standpoint:
If you have employees who use their own cars for company business, you should consider having Hired and Non-Owned Auto Insurance. This coverage protects the business, not the employee. If an employee causes an accident while driving their personal car for work and your business is named in a lawsuit, this policy helps defend and protect the company.

However, this coverage does not extend to the employee’s liability or damage to their vehicle. The only time your business insurance might step in for that employee is if they were injured and you have workers’ compensation coverage.

So, whether you’re driving for work, volunteering, or just for personal reasons—your personal auto policy is what follows you. You’re responsible for any damage you cause to others or to your own vehicle.

We hope this information helps clarify how insurance works when using your personal vehicle for business.
If you have questions or need help reviewing your home, auto, or business insurance, contact us here at Shropshire Insurance of Texas. We’d be happy to help.
We’d be happy to review your insurance coverage options with you! Give us a call at (806) 763-7311 or visit https://shropshireinsurance.com.