When Does Using Your Personal Vehicle for Work Become a Business-Use Insurance Problem?
You’re heading out the door when your boss says, “Can you drop this at the bank?” Five minutes later you’re in your own car, doing a company errand. Most of us assume this is a personal auto situation—and it often is. But there’s a second side people overlook: what happens to the business if there’s an accident while you’re on company time?
Two sides of the same trip
Your vehicle and your policy. Your personal auto policy may address your car and your liability as a driver, depending on your coverage and the circumstances. If you’re regularly doing work errands, your insurer may want to know. Frequency, the type of errands, and whether anyone else in the company ever uses your car can matter.
The employer’s exposure. Businesses can carry coverage designed for situations where employees use vehicles the company doesn’t own. This is often referred to as non‑owned auto. It’s meant to protect the business from its liability exposure—not to replace your personal policy or automatically take care of everything involving your car.
Questions for employees
Do you run errands in your car more than occasionally?
Has your agent confirmed how your policy treats that use?
Do you carry the limits your employer expects?
Who pays the deductible if your car is damaged while on a work errand? (Don’t assume—ask.)
Questions for employers
Do staff ever use their own vehicles for company business, even rarely?
Have you talked with your agent about non‑owned auto exposure?
Do you have simple guidelines (license checks, proof of insurance, acceptable limits)?
Do you reimburse mileage—and does that include clarity on responsibilities in an accident?
Michigan and Ohio notes
This isn’t legal advice, but context helps. Michigan’s no‑fault system and Ohio’s traditional liability setup mean the details of each policy matter. In both states, the safest approach is to review your policies and make sure you understand who handles what if there’s an accident during a company errand.
Bottom line
“Just run this over there for me” sounds tiny—until something happens between here and there. Employees and employers should both ask questions now, so there’s no confusion later.
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