Does insurance cover me if I use my personal vehicle for work?

8 minute read Published on Nov 7, 2025 by BrokerLink Communications

A woman in formal wear using her phone while getting out of her car

If you're using your personal vehicle for work, even just occasionally, it’s important to understand what your car insurance actually covers. Many drivers assume that their personal car insurance will protect them no matter how they use their vehicle, but that’s not always true.

In Canada, personal auto insurance is mandatory and covers things like commuting, running errands, or personal travel. But when you start using your car for business purposes, like delivering food, transporting tools, or meeting with clients, it often falls outside the scope of your personal car insurance policy. This can leave you unexpectedly on the hook if you're involved in an accident while working.

That’s where commercial auto insurance comes in. It’s specifically designed to cover vehicles used for work-related activities and helps protect both you and your business financially. Here's what you need to know.

Do all personal vehicles need commercial auto insurance if being used for business purposes?

Yes. Many people assume their personal auto insurance covers them for all types of driving, but if you're using your vehicle for work, that may not be the case.

According to Statistics Canada, in the fourth quarter of 2023, approximately 8.2% of Canadians aged 15 and older said they engaged in some form of gig work within the previous 12 months. Gig work is generally work that comes in short bursts, like one-off tasks, projects, or deliveries. These types of jobs include drivers for DoorDash, Uber, Amazon Flex, Lyft, and more.

The truth is that if you’re involved in an accident while using your personal car for business purposes, your insurer could deny the claim if you don’t have commercial auto coverage. They may also cancel your personal car insurance or deny a claim for failure to disclose that you're using it for work. So if your car doubles as part of your job, it’s worth looking into whether you need to upgrade your coverage.

Some companies will have their employees drive a company car, but others may require their employees to use their own motor vehicle. Here are some examples of businesses where you may use your own vehicle for work:

What if I only use my car occasionally for business?

If you only use your vehicle for business once in a while, you might not need full commercial insurance. However, it’s still a good idea to check with your insurance provider or broker. They may be able to adjust your personal car insurance policy to include occasional business use, which likely costs less than a full commercial policy.

What is commercial auto insurance?

Commercial auto insurance coverage is a form of business insurance designed to protect cars used for business purposes. Personal car insurance policies are designed to cover personal use only, so if you were to start using your personal vehicle for work, and an incident occurred, your insurance company could deny your claim. Thus, if you want to be protected at all times when using your vehicle, you will need to purchase a separate commercial auto insurance policy.

Commercial auto insurance coverage is very similar to personal car insurance coverage, except it covers you when your vehicle is being used for business purposes. Business use of a vehicle ranges widely. It may include transporting materials to and from a job site, delivering orders from your warehouse to your customers, or even transporting staff or clients between locations. Ultimately, insuring business vehicles is a key component of any effective risk management strategy.

What does commercial auto insurance cover?

Commercial car insurance is a type of auto insurance policy designed to protect your vehicle when it is being used for business purposes. It's very similar to personal auto insurance in terms of coverage, but it often offers broader coverage. This is because people who use their vehicle for work tend to spend more time on the road, increasing their risk of accidents. It may also include additional coverage for specialized needs, depending on what and how you're using your vehicle.

Commercial car insurance coverage varies between policyholders, but it must meet the minimum coverage requirements in the province where you reside. Each province has their own requirements. For example, third-party liability coverage is mandatory throughout Canada, and while most provinces require drivers to carry at least $200,000 in third-party liability coverage, in Quebec it's $50,000, and in Nova Scotia it's $500,000. Below, we detail the primary commercial auto insurance coverage types:

Coverage types

These are the most popular types of coverage you'll find in a commercial car insurance policy in Canada:

Personal car insurance vs. commercial auto insurance

You might be inclined to think that personal car insurance and commercial auto insurance are interchangeable since they share many of the same types of coverage. However, the reality is that they are not.

Personal car insurance is for personal use of a vehicle, and commercial auto insurance is for business use of a vehicle. One will not cover you for the other. Therefore, if you use your car for both personal and business purposes, you will either need to purchase two separate car insurance plans or add business car insurance as an endorsement on your personal car insurance policy. Failure to do so would mean that if you got into a car accident while using your personal vehicle for work purposes, your insurance company may deny your claim. Below is an overview of personal and business car use examples:

Examples of personal car use

Keep in mind that although using your personal vehicle for business use can make things confusing, there are major differences between personal and business use. Examples of using a car for personal use include:

  • Driving to the grocery store

  • Dropping your children off at school

  • Commuting to and from work

  • Taking occasional road trips or vacations

Examples of business car use

Meanwhile, examples of using a car for business use include:

  • Visiting clients

  • Delivering orders to customers

  • Transporting clients, tools or equipment

For example, a realtor who meets clients for showings or a social worker who visits several homes each day would likely require both personal and commercial auto insurance.

The cost of commercial auto insurance

Commercial auto insurance is dependent on several factors that are specific to the driver and the business, which means there's no one set rate for everyone. Your rate will be based on factors like the type of vehicle being driven, the driving records of all named drivers, the ages of the drivers, and the coverage types, limits, and deductibles you choose for your policy. A list of factors that determine commercial auto insurance rates includes:

  • Your annual mileag

  • Who owns the vehicle - you or the business

  • Your driving record

  • Your location

  • The age of all drivers

  • The number of employees who need insurance

  • The make, model, trim, and type of vehicle

  • The industry the business operates within

To receive an accurate and competitive commercial auto insurance quote, contact BrokerLink.

Can I add business use to a personal car insurance policy?

Yes. When purchasing commercial auto insurance, you'll either need to buy separate coverage or add business use to your personal car insurance policy. Talk to your insurance provider or broker to find out which option is best for you.

How do I know if I need commercial auto insurance for my personal vehicle?

If you aren’t sure whether you need business auto insurance, take a look at the following checklist. If you answer yes to two or more of the following questions, there’s a good chance you need commercial auto insurance:

  • Do you transport goods or food for pay (e.g., Uber Eats, Amazon Flex, SkipTheDishes, InstaCart)?

  • Do you receive payment for transporting clients, driving to and from clients' homes or real estate showings?

  • Do you use your car to visit clients, job sites, or real estate showings?

  • Do you carry tools, equipment, or materials for your business?

  • Is your vehicle registered under a business name or used mostly for work?

  • Do you drive a larger commercial vehicle or have multiple vehicles used for business?

Personal car insurance typically won’t cover these types of work-related driving situations. If you still aren’t sure whether commercial car insurance is necessary or right for you, contact BrokerLink to speak with a licensed commercial car insurance specialist today.

Learn more from BrokerLink

If you still aren’t sure whether you can use your personal vehicle for work, contact BrokerLink. A BrokerLink insurance advisor who knows the ins and outs of both car insurance and business insurance can help you understand in what circumstances commercial auto coverage will be required. From there, they can help you purchase an endorsement or a completely separate policy. Your dedicated BrokerLink insurance advisor will shop around to ensure you get the best possible price for your updated policy.

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 quote in minutes.

Get an auto insurance quote

FAQs on personal vehicle for business insurance

Should I use my personal car for business use?

If you are a small or home-based business, using your personal car for business use may be the most cost-effective option. If you choose to go this route, make sure you purchase a valid commercial auto insurance policy. Although this will cost money, the good news is that using your personal vehicle allows you to deduct certain expenses come tax time. For example, you might be able to claim your commercial car insurance premium, in addition to gas, licence and registration fees, parking fees, leasing costs, maintenance and repair costs, and interest accrued on any loans taken out to finance your vehicle.

Can I buy commercial auto insurance coverage for my personal vehicle?

Yes. If you use one vehicle for both personal and business use, you can add a commercial auto insurance endorsement to your personal auto insurance policy. This way, you will be covered at all times when using your vehicle. If you get into an accident on your way to visit a client, you will be covered just the same as if you got into an accident while driving to the grocery store.

What is a business use exclusion on a personal car insurance policy?

A business use exclusion is a clause in some personal car insurance policies that stipulates that business use of the vehicle is not covered. Many personal auto insurance plans include business use exclusions, which is why drivers who use their cars for work must purchase separate commercial auto insurance coverage or endorsements.

What is a business use endorsement on a personal car insurance policy?

The opposite of a business use exclusion, a business use endorsement is a policy add-on that states your vehicle is covered for business use. Such an endorsement increases your coverage, and also your premium, to give you protection in the event that an incident occurs when driving your vehicle for work.

If you have any questions, contact one of our local branches.

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