When you apply for auto insurance, your agent will ask a variety of questions. One of the things you will be asked is whether you intend to use your car for “commuting” or “pleasure” purposes. While this question is designed to characterize your intended car usage, how does your answer affect your insurance costs? Here’s how your car usage affects your auto insurance rates.
The Difference Between Commuting and Pleasure
If you use your car to get to and from work every day, then you are clearly using your car for commuting purposes. However, the insurance definition for commuting includes more than work travel. Oftentimes, simply using your car to run regular errands such as grocery shopping and taking your children to school, will also be characterized as commuting. Your car use is only really classified as for pleasure when it is not your primary vehicle. Insurers will often classify a car as a pleasure vehicle if it stays under a certain annual mileage. Obviously, when it comes to choosing between commuting and pleasure, there are a lot of gray areas. If you are not sure how to classify your car usage, then speak to your agent for clarification.
Car Usage and Your Insurance Rates
If your car is used for commuting purposes, then it is more at risk for damage or an accident than a car that is used for pleasure. This is because commuting indicates that your car is used on a regular basis. The more that your car is out on the open road, the more risk that it faces. Because increased risk translates into higher insurance costs, classifying your car usage as commuting will result in higher rates than classifying it as for pleasure.
This is how your car usage affects your auto insurance rates. Do you have further questions regarding your car insurance? If so, then contact the experts at Mike Leonard Insurance Agency. Our dedicated team is eager to find you the right coverage from one of our many carriers including: Kemper, MetLife, Nationwide, Travelers, The Hartford, Safeco Insurance, Progressive, and American Strategic Insurance.