Personal Auto Insurance Classifications
I recently reviewed an auto insurance policy for a business owner. I discovered the auto had been misclassified which may be grounds for a claim to be denied. The business owner chose to stay with his “Big Named Company” in spite of the fact they set him up for big trouble.
Here are some classifications you should be aware of:
Personal and Pleasure
Vehicles classified in the personal or pleasurable category are the least expensive vehicles to insure. These automobiles are used for everyday errands or activities. They are usually driven around town within a small mileage radius. Auto insurance rates always vary by state and the age, make, and model of the vehicle.
Commute classified vehicles is transportation used solely for going back and forth to work or school. These vehicles at times may be used for pleasure but are not used for business transactions of any kind. Commute classified vehicles are less expensive to insure.
Artisan is used by insurance companies when a vehicle operator uses transportation to store and transport certain items, tools or equipment for business. Plumbers, carpenters, electricians, carpet cleaners and other such businesses are classified under Artisan. People in these professions must have vehicles that will allow them to perform work in an effective and timely manner. Artisan classified insurance runs higher than personal insurance but lower than commercial auto insurance rates.
Business classifications are usually deemed the company car. Drivers use these vehicles for business purposes. Materials and goods are not transported with business class vehicles. Since tools and equipment are not carried in these vehicles, insurance rate fall somewhere in the middle.
In which class SHOULD your personal auto be classified?
Is it properly classified? Again, if you’d like a no-cost review of your auto insurance policy (or any other of your property and casualty policies), please contact us or complete our online auto insurance review request form.
Answer to the September 2013 Survey in the PinPoints eNewsletter is “D”.