Commercial Motor Insurance is designed for vehicles used for business purposes, while Private Motor Insurance is primarily designed for personal vehicle use.

When can Commercial Motor be relevant? #

Examples include vehicles that are:

• Owned by a business
• Used extensively for business activities
• Used to carry tools, equipment or goods
• Used for deliveries
• Regularly driven between job sites
• Driven by employees
• Used by multiple business drivers
• Part of a fleet

Some Private Motor policies permit limited business use, but the permitted activities vary between insurers.

What other differences can apply? #

Depending on the policy, Commercial Motor Insurance may provide options or benefits relating to:

• Business use
• Multiple drivers
• Fleets
• Signwriting
• Substitute vehicles
• Downtime or hire vehicle benefits
• Commercial vehicle types

These features vary and should not be assumed to be automatically included.

Tools and equipment carried in a vehicle are also not necessarily covered by the motor policy.

Separate General Property Insurance may be relevant.

The insurer should have an accurate description of how the vehicle is actually used.

Can the same vehicle be used for business and personal purposes? #

Usually, yes. A vehicle insured under a Commercial Motor policy can often be used for both business and personal purposes, provided the actual use is disclosed to and accepted by the insurer.

Relevant information can include the business activities, whether tools, equipment or goods are carried, regular drivers, deliveries, transported customers or passengers, and the extent of private or family use.

Rideshare, courier or delivery work, carrying passengers for payment, or transporting dangerous goods can require specific underwriting or a different policy arrangement. Tell us if the vehicle’s use changes during the policy period.

Contact our team if you are unsure whether a Commercial or Private Motor policy is appropriate for a vehicle.