There is commonly some confusion when it comes to car insurance for business use vehicles. Many small business owners are unsure of what types of auto insurance policies are necessary for their cars. This articles discusses whether or not personal car insurance is enough to cover cars that are used for business purposes or if a commercial auto insurance policy is required.

Improperly insuring your company vehicles can actually leave you completely uncovered. In other words, even if you have car insurance, if it's not correctly defined when it's obtained, if the car were to be stolen or involved in a car accident, the policy that you hold may not cover the damages.

To the auto insurance companies, there is a big difference between personal use and business use. Of course, if you have vehicles that are registered to the company, have been bought by the company, and are driven by company employees, it's pretty easy to determine that a business auto policy is necessary. In fact, no insurance company will even make a personal policy available.

But what if you own a very small business with no employees and you drive the same car for both personal and business purposes? Do you need a personal policy, business policy, or both? In most cases, a personal policy will be sufficient, even when used for business purposes. However, it must be stated in the policy that the car is also used for business purposes and you will pay higher rates. Also, any business contents that are frequently stored in the car must be detailed in order for them to be covered.

It's a good idea to keep a detailed mileage log throughout the year, detailing how many miles were driven for personal reasons and how many were for business purposes. Not only will this save you money on your taxes, it will also help to save you money on your auto insurance rates.