Glossary

Business use

A personal policy rating for a car driven as part of your job, such as visiting clients or job sites, which costs more than commute or pleasure use.

Also called: business use rating, business use classification

Business use is one of the vehicle-use classes insurers assign on a personal auto policy, alongside pleasure use and commute use. It describes driving that is part of the work itself, rather than just getting to and from one workplace: a real estate agent showing homes, a contractor driving between job sites, a salesperson calling on customers or a home health aide visiting patients.

Business use usually costs more because it means more miles, more time in unfamiliar places and more exposure to crashes. Many personal policies can cover this kind of job-related driving once it is disclosed and rated correctly.

What a personal policy generally will not cover, even with business use, is carrying people or goods for a fee. Rideshare driving, food and package delivery, and hauling for pay usually need a rideshare endorsement, a delivery endorsement or a commercial auto insurance policy, because the standard personal auto policy excludes those uses. Heavy vehicles, cars titled to a company and employees driving for your business also usually call for a commercial policy. Tell your insurer how you really use the car; undisclosed business driving can complicate a claim.

Last reviewed October 4, 2026

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Related terms

Commute use A vehicle-use rating for a car driven to and from work or school, typically priced between pleasure use and business use. Pleasure use A vehicle-use rating class for cars driven for errands and recreation, not for a regular commute to work or school or for business. Commercial auto insurance Insurance for vehicles used mainly for business, covering liability and physical damage risks that a personal auto policy excludes. Rideshare endorsement An add-on to a personal auto policy that covers a rideshare driver during gaps in the platform's insurance, especially while waiting for a request. Rating factors The characteristics insurers use to price a policy, such as driving record, location, vehicle, mileage and, where allowed, age and credit.

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