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Q

When getting a quote for auto insurance what is the reason for the question - What is the primary use of this vehicle? The options being commute to work, commute to school, business or pleasure. Does it have a negative or positive affect according to which one I choose?


A

When getting an auto insurance quote or buying a policy, primary use helps categorize car usage and drivers' needs. Insurance companies use it as a rating factor to determine your premium.

How you use your car most is a car's primary use. Auto insurance companies usually categorize primary use as:

  1. Driven to and from work
  2. Driven to and from school
  3. Pleasure
  4. Business
  5. Farm

You need to give truthful information about the car and how it is primary used and yes, the way in which it is used can make a difference in the rate you receive. The more you drive the vehicle the higher the rates would be generally. For example a car you only use during the weekend or in good weather for pleasure like a convertible would be rated differently than a car that you use on a daily basis commuting to work in lots of traffic. This is due to the fact of an accident to happen if you use a car daily compare to one a week is greater so the risks are greater for the insurer.

Here is some help with what classification or primary use you should choose for your vehicle. These definitions are basic but remember insurance guidelines differ so the primary use definitions can be defined differently by each company:

  • Select Pleasure Use if the vehicle is most often used for non-commuting activity, and if the vehicle is not used in the course of any business activity. This means you typically drive your vehicle for fun with no regular commuting or business use.
  • Select To and From Work or School if the vehicle is regularly used for commuting to a workplace or school and the one-way commute distance is 4 or more miles.
  • Select Business Use if the vehicle is regularly used for occupational responsibilities, such as traveling between locations for sales calls or other business appointments.
  • Select Farm Use if the vehicle is only used in farming or ranching activities.

So there the primary use of your vehicle is used as a rating factor and the so the rates for a vehicle's coverages may differ depending upon your use for it. There is not necessarily a positive or negative affect for the type of use you pick, just a different rating category you may fall into. If you select business use, then underwriting will determine if it needs to be a commercial policy or a business use policy.

Your answer to this quoting question should be based on the actual use of your vehicle. For instance to try and save money do not say your daily commuter for work is a pleasure vehicle since if your insurer was to find out that you gave incorrect information this would affect your quote and also could be deemed misrepresentation, a form of insurance fraud.


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