Using Your Car for Work? You May Need Commercial Auto Coverage

Thousands of Ontarians use their own car for work every day: visiting clients, hauling tools to a job site, running deliveries for an app. Most of them assume their personal policy has them covered.

Often, it doesn't. And the time most people find out is after an accident, when the claim is already in trouble.

Personal, business and commercial use: what's the difference?

Insurers sort vehicle use into three broad categories:

• Personal use: driving for personal, social and household reasons, including your daily commute to a regular workplace. This is what a standard personal auto policy is built for.
• Business use: using your own car for work tasks, such as client meetings, sales calls, travelling between job sites or carrying work materials. Depending on how much you do, an insurer may cover this on your personal policy once you declare it, or may require a different policy.
• Commercial use: using the vehicle mainly to earn money with it, such as deliveries, carrying goods or passengers for pay, or hauling equipment as part of a trade. This generally requires a commercial auto policy or a specific endorsement.

Why it matters: undeclared use can put your claim at risk

Your premium is based on how you told your insurer the car is used. If you're in a collision while using the vehicle in a way you didn't disclose, the insurer may treat it as a misrepresentation. That can lead to a reduced or denied claim, cancellation of your policy, and trouble getting insured afterwards.

Telling your broker costs you a phone call. Not telling them can cost you the claim.

Common situations that need a second look

• Food and package delivery. Apps like Uber Eats, DoorDash, SkipTheDishes and Amazon Flex. Some platforms provide insurance while you're on the app, but coverage varies by platform and by stage of the trip, and it may not cover your own vehicle's damage. Your personal insurer usually needs to know.
• Ridesharing. Uber's Ontario coverage, for example, applies only while you're driving with Uber. Driving for more than one platform means checking each one.
• Trades and contractors. Carrying tools, equipment or materials to job sites, especially in a pickup or van, or with a trailer.
• Sales and client visits. Regular driving to meet clients, show properties or make sales calls.
• Vehicles with your business name on them. A wrapped or lettered vehicle, or one registered to your business, often points to a commercial policy.

Business owners: your employees' cars are your risk too

If your staff use their own cars to run errands, visit clients or pick up supplies for your business, your company can be pulled into a lawsuit after an accident, even though you don't own the vehicle.

Non-owned automobile liability coverage protects your business in exactly this situation. It's often added to a commercial package policy for a modest cost, and it's one of the most commonly missed coverages we see.

What to do next

1. Write down every way you use your vehicle for work, and roughly how often.
2. Call your broker and describe it honestly. A good broker will tell you whether your current policy covers it.
3. If you drive for a delivery or rideshare platform, ask exactly when the platform's coverage applies and when yours does.
4. If you own a business, ask about non-owned auto liability and whether any vehicles should move to a commercial policy.

Frequently asked questions

Does personal car insurance cover driving to work?

Yes. Commuting to and from a regular workplace is normally considered personal use. Driving during the workday for work tasks, like client visits or job sites, is business use and should be declared.

Do I need commercial insurance to deliver food in Ontario?

Usually you need either a commercial policy or a specific delivery endorsement on your personal policy, unless the delivery platform's own insurance fully covers you. Coverage differs by platform, so confirm with your broker before you start.

What happens if I don't tell my insurer I use my car for work?

If you have an accident while using your car in an undeclared way, your insurer may reduce or deny the claim, or cancel your policy. It's always safer to disclose.

Is commercial auto insurance more expensive?

Often it costs more than personal coverage because the vehicle is on the road more and faces different risks. But the right policy is far cheaper than an uncovered claim, and a broker can compare insurers to find the best rate.