I just purchased a ford transit 350 xl 12 passenger van both for personal and slight business use. We wanted to use the van for big group roadtrips and vacations while also being able to use it load up inventory for our business from time to time because of the large cargo space. Currently use our personal vehicles for small loads of inventory from time to time and they are insured under personal policies.
Wanted to know if I would be able to also insure this van under a personal policy or if this is considered insurance fraud. State Farm quoted me nearly double for business use insurance policy compared to a personal policy and said I have a high chance of being denied the personal policy by underwriters anyways. ($5500 vs $3000 quote)
Personal Insurance on Ford Transit
byu/Hot-Kick8844 inInsurance
Posted by Hot-Kick8844
3 Comments
You could insure it under personal, but then you might have an issue with it being used for business use. You likely would not be covered during the times you use it for business. So it really depends if you want to roll the dice and hopefully not get into an accident when using it for business.
Find a different company that will allow occasional business use.
It’s insurance fraud if you don’t reveal to the insurer how the vehicle is being use.
Business use is a rate class for passenger cars.
But it’s not an entitlement. It’s subject to the insurer’s underwriting rules.
Trucks and vans are reviewed based on the type and extent of use.
Using your personal vehicles for “small loads of inventory from time to time” is fine depending on what you are hauling and how frequently and whether your insurer is aware of the use and has charged you the appropriate rate.
Using a 12 passenger van for any business use would require commercial auto insurance at most insurance companies.