We do not currently quote this product online, but to get a quote in under 15 minutes please give us a call.
What are you looking for?
8 minute read Published on Jan 12, 2026 by BrokerLink Communications
In Canada, it’s common to use personal or work vehicles interchangeably, such as running errands in a company car one day, then switching to your own vehicle the next. But many drivers aren’t clear on how an accident in a work vehicle might affect their personal auto insurance. The issue basically comes down to whether the incident appears on your personal driving record. Transport Canada reports nearly 2,000 annual fatalities and over 9,000 serious injuries from collisions in 2023, showing road incidents remain a serious concern nationwide. With over 25 million registered vehicles and more than 80% of Canadians commuting by car, the odds of a crash, whether in a personal or work context, are real.
The truth is that if a car accident with a company vehicle is deemed your fault and is formally recorded, either through a police report or an insurance claim, the accident typically lands on your driving record. If that happens, your insurance provider could see it during renewal, label you as a higher risk and adjust your premiums accordingly.
Let’s break this down in simple terms. We should all know that personal auto insurance is what most of us have on our own cars. It's the mandatory policy that covers us when we’re driving to the grocery store, picking up the kids, commuting to and from work, or heading out on a weekend road trip. It’s all about protecting you and your personal vehicle. So, what is commercial vehicle insurance? Let's take a look:
Commercial vehicle insurance steps in when a vehicle is used specifically for business purposes. Think delivery vans, contractor trucks loaded with tools, or even a realtor’s branded SUV. This type of insurance is designed to cover risks that come with using a vehicle for work, like delivering or transporting goods or carrying clients. But let's break that down even more. For commercial vehicle insurance, you can either have:
Individually insured work vehicles
Fleet insurance
Small businesses or self-employed professionals, such as a delivery driver or a salesperson visiting clients, would likely only have one or two business vehicles, meaning they would likely insure them individually. Meanwhile, fleet insurance is used by businesses that operate several vehicles, like a transportation company with a dozen semi-trucks or a large landscaping business with multiple vans and trucks. Instead of insuring each vehicle separately, they can bundle them under one fleet insurance policy, making them easier to manage and often more cost-effective. While rules can vary, to qualify for fleet insurance in Ontario, the Financial Services Commission of Ontario (FSCO) says a business must have at least five vehicles.
Here's the thing. That casual drive to a client meeting or driving from one job site to another isn’t just your usual commute. This means that standard personal car insurance often won’t cover what happens when you’re driving for work. This is a significant problem for several reasons:
If you get into a collision while on business, even something as simple as delivering a work lunch, your own insurance company could argue that it wasn’t covered and deny your insurance claim. That means paying out of pocket for repairs, medical costs, and more.
If someone gets hurt or their property is damaged and your personal policy excludes business use, you might end up facing medical expenses, legal fees, or even a lawsuit that you'll have to pay for out of your own pocket.
If you never disclosed that you’re using your car for work, a car accident could trigger a policy review, which means you may face higher rates, or worse, your policy could get cancelled. So, if you use your personal car for work-related purposes, it's essential that you speak to your personal auto insurance provider or broker about adding a business-use endorsement or purchasing a commercial auto insurance policy. Want personalized advice on what fits your driving habits best? Contact BrokerLink.
So, who exactly is on the hook when there’s a fender-bender in a company car? Is it you? Or your boss? In Canada, the answer is that it usually depends on whose vehicle it is and what you were doing at the time of the collision. Below, we discuss two separate scenarios:
According to several provincial traffic acts, including Ontario's Highway Traffic Act and Alberta's Traffic Safety Act, business owners are vicariously liable (vicarious liability) for damages caused by anyone driving their vehicle with consent, either expressed or implied. Similar principles apply across other provinces, though specifics can vary.
Basically, this means that employers are generally responsible for collisions that happen while an employee is driving a company vehicle for work purposes. This is why they carry commercial auto insurance. So if you’re using a work vehicle to deliver goods, visit clients, or run a job-site errand, that policy is there to protect the business if something goes wrong on the road.
In Alberta, the Mustafi v. All-Pitch Roofing case made headlines back in 2014. According to the Canadian Underwriter, even though the employee was explicitly told by the employer not to drive the truck, the court still held the employer liable because the employee had “possession” of the keys and truck.
However, if the employee acted outside their scope of employment, which means if they were using the company-owned vehicle for something not work-related, like stopping by a friend’s house, running personal errands, or even meeting up with someone for lunch while clocked out, they would likely be held liable, and their own insurance could come into play (or worse, leave you without coverage entirely).
Whether you’re headed to a job site or delivering supplies in a company van, certain coverages are non-negotiable in Canada. However, which mandatory coverages are necessary depend on where you live in Canada. For example, according to the Insurance Bureau of Canada (IBC), while both Ontario and Alberta are required to carry liability and accident benefits, Ontario drivers must also have uninsured automobile coverage, while Alberta drivers need direct compensation-property damage coverage. Just like personal car insurance, commercial auto insurance policies in Canada have some form of the following coverage:
Third-party liability coverage
Accident benefits coverage
Uninsured automobile coverage
Direct compensation-property damage (DCPD) coverage
On top of mandatory coverage, there are several types of optional coverage available for a commercial auto insurance policy to help provide more thorough protection, including:
Collision coverage
Comprehensive coverage
Accident forgiveness coverage
Loss of use coverage
Non-owned vehicle coverage
Finally, if you regularly use your personal car to do your job, a business-use endorsement can help ensure your insurer doesn’t deny a claim if you’re in a car accident while on the clock.
Have you ever wondered why your friend’s work van insurance is cheaper than yours? The fact is that insurance pricing varies significantly based on several factors. Think of it as kind of like a big recipe, and how every ingredient in it matters. Here are some factors they'll consider and why:
This one always comes first. For example, a heavy-duty pickup hauling expensive tools every day will likely cost more to insure than a compact car that's only used for quick client visits. Also, if your vehicle is branded or customized, that can add to the cost, too.
Next is driver history for both you and anyone else driving your vehicle (e.g., employees). Insurance companies see anything like tickets, at-fault accidents, or past claims as a red flag. If you or your employees have any of these on your driving records, your insurance will likely be higher to make up for the increased risk of insuring you.
Insurance companies also want to know where you're located and where you park your company vehicle(s) when not in use. For instance, parking your work van in a secured garage in Calgary will likely lead to lower rates than if you leave it parked on a busy Toronto street overnight. Street parking comes with increased theft and vandalism risks.
Finally, the type of cargo you transport or the service you provide can also affect your insurance premiums. For example, if your company often transports expensive electronics, you can probably expect higher premiums than someone who spends their work day delivering flowers. While flower deliveries are generally not cheap, it typically costs significantly more to replace damaged or stolen electronics.
Whether you're running a small fleet or using a personal vehicle for business, here are some tips to help save you money on your commercial insurance premiums:
If you own two to four business vehicles, you may be able to bundle them under one policy for a multi-vehicle discount. Plus, with having them all under one policy, that's only one payment and one renewal date to remember. On the other hand, if you own five or more vehicles, consider upgrading from individual commercial auto insurance policies to one policy under fleet insurance. This is typically more cost-efficient and, again, only one annual or monthly payment and renewal date to worry about.
Installing telematics (like GPS monitoring, braking sensors, or speed monitoring) or using an app helps insurance companies see that you're a cautious driver. In Canada, drivers can receive a discount of up to 10% just for enrolling in a telematics program.
Completing a certified defensive driving course can lower rates by up to 15% for both personal and commercial drivers. New or immigrant drivers can especially benefit from these courses, as they not only teach important driving skills, but insurance companies also reward you for having the certificate.
In Ontario (and many other provinces across Canada), equipping work vehicles with approved winter tires during specific winter months can earn you up to a 5% winter tire discount. Just make sure you double-check your policy to know what months you need to have them on and to let your insurance company know that you're using them.
Your business needs may constantly evolve. For example, maybe you’re doing fewer deliveries or you've downsized routes. If this is the case, you may have more coverage than you need. That's why it's important to review your policy every year with your broker before renewal to adjust coverage or usage tiers.
Whether you have questions about how commercial auto insurance works, how collisions can impact car insurance rates, or what to do if you get into a car accident in a work vehicle, contact BrokerLink. We are auto insurance experts, which means that any one of our licensed insurance brokers will be able to answer all of your car insurance-related questions.
Plus, as a full-service auto insurance brokerage, the BrokerLink team is always happy to help you purchase the right kind of insurance coverage for your needs. You can reach us by phone, email, or in person at any one of our locations throughout Canada. No matter how you choose to get in touch, a BrokerLink insurance advisor will be happy to assist you. We also encourage you to take advantage of our free online quote tool that can provide you with a competitive commercial vehicle insurance quote in minutes.
Get an auto insurance quote
