As a landlord, you might need to travel with your business vehicle but it also questions if a landlord needs dedicated car insurance when traveling with a business car. In this article, we will discuss – is landlords travelling to properties business use car insurance.
Before discussing further, it is important to understand if your car insurance policy covers these types of rental trips. Generally, it depends on which firm you have taken the insurance. But most of the time, car insurance doesn’t cover rental cars for work purposes. It could be a little confusing, let’s discuss it in more detail in this article.
Is landlord travelling to properties business use car insurance?
When a landlord travels to his rental properties with the purpose of site inspection, meeting contractors, and landlord-related tasks, a travel with business car is covered under car insurance. However, general insurance cannot cover these business trips and you may levied taxes or penalties for travel without the right car insurance.
In case when driving is your primary job, general insurance can be used for traveling purposes, and you can travel tax-free. When you travel for rental properties or business dealings, a landlord travelling to properties using a business car is not permitted.
In a nutshell, you may require separate insurance when you are traveling with a personal car and with a business vehicle. You still need separate business car insurance when you travel to your business property with your personal vehicle.
Car insurance seems more than sufficient for what looks to be normal personal vehicle use, especially if the landlord travels frequently to ensure his properties are well maintained. However, if those journeys are considered part of the landlord’s business practice, tallying up rent, inspecting the upkeep, or holding meetings with tenants, for instance-the type of coverage needed may also shift.
What is Business Use Car Insurance?
Business insurance, often known as commercial insurance, covers vehicles used for business purposes, and they cannot be used for personal traveling purposes. However, many times insurance company offers additional benefits to insurers and they may use the same insurance coverage for both different traveling purposes.
A business using a car for insurance covers the following situations –
- Comprehensive liability coverage
- Personal property protection
- Bodily injury and death
- Rental property damage
- Collision coverage
- Business related driving
- Tax deductibility of mileage
- Medical payments and no-fault coverage
- Physical damage coverage including theft, vandalism, fire, etc
Why Business Use Insurance May Be Needed
Personal car insurance usually covers commuting or running personal tasks or jobs, but business activities are not included. The insurance company makes this distinction between personal and business use of the vehicle.
A landlord would be using their automobile for business purposes if they were going to view different properties, meet contractors, inspect a site, and so on, which could result in activities that would negate personal insurance coverage.
Business use car insurance helps protect car use related to work outside of a regular commute. For the landlord, business insurance would provide liability and damages during traveling while working on matters related to the rental properties.
Potential Outcome of Not Having Business Insurance
The largest potential risk that landlords face and are totally dependent on private car insurance should they use the same vehicle for business purposes is total denial of their claims. In case an accident occurs due to the performance of tasks carried out for business purposes by a landlord, then the car insurance provider may subject him or her to a full-scale investigation of the nature of the journey.
The examples include collecting rent and visiting properties that he or she owned and maintained. In case the insurance company finds that this was a business trip, they would nullify the claim and the landlord would be left to bear the cost of restoring or legal claims.
Driving without proper coverage may result in policy cancellation and the hassle of getting affordable insurance in the future.
How Do I Know If I Need Business Insurance?
Whether a landlord wants business use insurance depends on the frequency of the usage and the purpose of traveling. If used primarily for personal needs but occasionally for activities that relate to rental properties, then one would want to notify his or her insurer about the dual-purpose use.
Several providers of insurance offer special endorsements or extensions of a personal policy to allow for occasional business travel without having a separate commercial policy. The following are the ways that help you identify if you literally need business insurance when you traveling to properties –
Monitor your usage: If business kilometers around rentals make up a significant portion of your driving, commercial use insurance is likely the way of the future.
Talk to your insurance company: Every insurance provider has their requirements and expectations. It will be very helpful in discovering how business use is determined and what makes sense for your situation.
Conclusion
Landlords who spend a significant amount of time visiting their properties will need business use car insurance. It is one of those things that seems like a waste of money at first, but it pays off to have one of those unexpected events. By reading this article, you may have got an answer to the question – is landlord travelling to properties business use car insurance? Don’t make that assumption about your personal coverage being enough, check up on what you really need talk with your insurance provider, and make the decision accordingly.
