Insurance Insights ~ April 2000

Business Auto vs. Personal Auto

Using your personal car for business

If one of the perks of your job is a company car, then chances are your employer pays to insure that car. In that case, there's no question about which insurance policy will cover an accident. But some companies expect employees to use their own cars when they're out on company business, and if you're self-employed, you may use your car for both business and personal reasons.

This gray area between business and personal use raises additional questions about car insurance. When does the company's policy cover you and when do you have to rely on your personal auto policy? Who should you call first? If you own your own business, will your personal auto policy cover you or do you need to take out a commercial policy? And what about rental cars on business trips? The answers will depend on your specific situation.

Personal car, company business

Most corporations have commercial policies that cover employees while they're traveling. If you're driving your own car on company business and you get into an accident, then chances are that your policy will kick in first, but it's also possible that your company's insurance will pay before your own. Be sure to check with your company and your insurance agent to get the details.

Your employer should know the basics about insurance coverage for its workers. Make sure you understand how it works at your company. If you are covered through a company policy, find out from your employer who you should call and carry that information in your car.

Regardless of which insurance company you talk to first (yours or your company's), you should let the adjuster know that you were traveling on business. Your personal auto insurance company shouldn't deny your claim just because you were traveling on business, although it might try to recover the money from your employer's insurance company later.

Time to go commercial

If you use your car all day to make sales calls, you may want to purchase higher liability limits, but your personal auto policy should suffice. However, if you get direct compensation from the use of your car — you make deliveries, or use it as a taxi or livery service — then you're going to need extra coverage. You may even need to buy a commercial policy. It may be tempting to neglect mentioning this little fact to your agent, but if you ever need to file a claim, your insurance company can deny it if it finds out you misinformed them. And if you intentionally mislead the insurance company, it's called fraud.

If you use your car primarily for your business — say you're a carpenter, a landscaper, or independent contractor — then you may also need a commercial auto policy. Talk to a few different insurance agents about the way you use your car to see what they suggest and the rates they offer.

Top 10 Steps to a Safer Cycle Season

The following article taken from GuideOne Insurance "The Rider"

If you live in a warm climate, you may have been touring all winter. However, those of you in cold-weather locales are no doubt eagerly anticipating the 2000-riding season. Before you "hit the road," remember to follow these 10 basic safety steps:

• Examine your tires for wear and correct air pressure, check spokes and replace any missing ones.
• Make sure battery terminals are clean and properly connected.
• Turn on your headlights and check for correct aim, also test all other lights and reflectors.
• Look for cracked and frayed areas on wiring, cabling and hoses.
• Work the throttle and levers, checking for correct operation.
• Make sure your sidestand and centerstand are in good condition.
• Check chain or belt for correct tension, proper lubrication and evidence of wear.
• Examine forks and shocks for proper function and adjustments and thoroughly check the condition of the frame.
• Check all seals, bearings, cotter pins, bolts and fasteners.

A few minutes of preparation before your first ride can help prevent the inconvenience of breakdown and – more importantly – the danger of an equipment malfunction at cruising speed.

Contact us to learn more about why GuideOne is the right choice for covering your fun on the road at competitive prices.

GuideOne Covers Your Fun!

Active lifestyles require insurance that’s just as dynamic. For Personal Watercraft insurance we suggest GuideOne Insurance, which offers:

• Competitive pricing
• A variety of coverage options
• A variety of liability limits
• Attractive premium payment plans
• Liability coverage that includes medical coverage
• Coverage for transport trailers and equipment
• 10% discount for one-year ownership
• 10% discount for US Coast Guard, Red Cross or state-sponsored safety boating course

Contact our agency and inquire about GuideOne Insurance.

INSURANCE INSIGHTS is an electronic newsletter published monthly by G. C. Weimer Associates, Inc. Information contained herein is accurate to the best of our knowledge and belief as of 4/1/2000. If you have a topic of interest for a future issue, e-mail us at info@gcwinsure.com.