Can I add my business vehicle to my normal auto insurance policy?

Can I add my business vehicle to my normal auto insurance policy?

I am the sole owner of an S Corporation and I am about to purchase a used vehicle that will be owned by my Corp. The vehicle wont be used for anything more than going to the store to buy paperclips due to the nature of my business. Can I include this on my normal personal auto insurance policy? Or am I required to take out a policy solely for my corporation?Thanks


No you cannot. If it is used for Commercial use, they will not insure it. You will have to get a Commercial Policy, which will be higher. If you try to insure it on your regular insurance and get into any type of an accident, they have the right not to pay for the repairs, and they can cancel you completely.Source(s):Over 33 years as a business Owner.

If you just use the vehicle to buy paper clips you could state that you don't need a vehicle at all to run your business... after all who is to say that you are running a vehicle in the course of a business if you have a box of paper clips in your car????But since you need your clips to run your business, you could deduct your car expenses from your taxes, including your business car insurance.You could then drop your normal policy and just use your business car for private use. Obviously you would have to declare that a proportion of the time that the car is used isn't for business, let's say 50/50 in that case you can only deduct 50% of the car expenses off your taxes including half what you will spend to buy your car etc etc.Your accountant will know, if you don't have one, ask your taxman, they should explain.Source(s):been there before, i just know


Yes, You will have to have a separate policy for the business car. You must inform the insurance company that the car will be used for business. The rates are different. If you put it on your personal policy without informing the insurance company and you have a claim, it probably will not be covered and you may be canceled.



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