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Driving for Business? Make Sure You’re Covered!

Recently, I came across an article, “15 Things You Need To Know About Buying Auto Insurance – Consumerist“, that talked about auto insurance and how people don’t realize that their auto insurance won’t cover them in certain situations, such as when they have a new teen aged driver in the family, or if they lend someone their car for the long-term, where the car is kept at that other person’s residence. There were other situations listed also, and I knew about them all and knew not to put myself in any of them…except one.

It was situation # 12 listed in the article, about business use of your car. Sure, I did know that if I had started my own delivery or taxi business using my own car, that I’d need special additional insurance for my car, but I didn’t know that taking a simple delivery job, such as delivering meals part-time, or free publications to businesses part-time, fell into this situation also.

But, this article, and another one on Yahoo that I can no longer find, led me to thinking. I decided to go to my insurance agent’s office the very next business day, to really find out if this applied to me or not. Here’s what I found:

1. Your car is not considered to be used for business if you report to a work place and the car is parked for your entire work day. And you’re still covered if you run the occasional errand for your employer.

2. If you use a company vehicle for work, your company covers you. (But always double-check first!)

3. If you don’t report to an actual building and you drive to where you work, such as going to client’s homes or businesses, even if you don’t drive from client to client, then your car is considered by the insurance company to be used for business.

And it doesn’t matter if you are an employee, independent contractor, or any other work status! So, even if you get a job as a simple pizza delivery person, or a free publication delivery person, or even to distribute fliers door to door as I do, you need to check your policy first!

As an example, I distribute fliers door to door. I go straight from my home to the neighborhood where I will distribute the fliers by walking door to door. Yet, even though I do not drive from house to house but merely drive from home to the neighborhood, the insurance company still considers my car as being used for business.

4. If you plan on transporting people or hazardous materials, you absolutely need to check with your insurer and will most likely need a special commercial policy in addition to the one you now have. And yes, if you plan on driving for Uber or Lyft, or anything similar ride service where you use your own car, you would most likely need that special commercial policy.

So, the bad news was that my policy would not cover me if I was at fault in an accident during my working hours!

The good news was, I didn’t need a special commercial policy since I wasn’t transporting people or hazardous materials. And adding the business coverage I needed only added $9 to my 6 month premium! A very good price to pay to avoid a huge shock and disaster should I have an accident while working!

Unfortunately, many people don’t know where pleasure use ends and business use begins for their cars, and many insurers don’t make this very clear, if at all.

So, if you haven’t used your car for business and are planning to, or if you’re not sure whether or not you’re currently using your car for business, check with your insurer! It could prevent a lot of shock and heartache!

Safe driving!

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And thanks for reading! 🙂

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In the Market for a Sports Car? Here’s some Things to Think About

If you’ve read my earlier post, Why I Prefer Small Cars“, you may have read that, when I was younger, I liked sports cars. They looked great, (And still do, in my opinion!), they were fast, and also powerful, and I assumed they really handled well.

As time went on, however, I saw that these cars were really impractical for me. And possibly others, too. Now, you may have heard stories about some guy, (Usually a middle-aged guy, but any guy, or girl, is prone to doing something like this!), who wins the lottery or receives a really big inheritance and rushes out to get his Ferrari, Maserati, or Lamborghini. What happens?

Well, first of all, he probably thinks he looks really great and impressive. But he soon has to confront some realities.

First, cost. Unless his windfall is really, really huge, he could be blowing it all, or close to it. Many exotic sports cars come with price tags of $250,000 and up. And even used models can set you back $80,000 or more, enough to buy 3 or 4 brand new 2014 Honda Civics or Toyota Corollas fully loaded.

And that’s just the beginning. There’s insurance, which is likely to be astronomical as well. I know its pure speculation, but I would guess that one’s yearly cost for insuring a Ferrari at the lowest level of coverage could be enough to insure 5 average mid-sized cars at full coverage for each!

Also, due to their powerful engines, they are not likely to do well in the gas mileage department.

Then, these cars require lots of maintenance. And, since mechanics who specialize in these cars are in a high-end niche, they will charge much more for their services. And these cars often have more things go wrong here and there, than most less expensive cars.

Then, there’s driving them. I’ve never driven one, but I understand that it’s very easy to ruin a clutch or other part of these vehicles if shifting and acceleration aren’t done right. And, if fueled by an ignorant need to show how fast one can go, control can be easily lost. Check out You Tube videos under “Jerks Driving Super Cars”, or anything similar.

And, their interiors are often cramped, and may be more spartan in terms of amenities than one would expect. You also ride very low, and if you’re big and tall, overweight, or arthritic, or just plain unable to bend easily, getting in and out of these cars can be a real pain. And for long trips, forget it! I saw a You Tube video once about the Lamborghini Countache, One of the top exotic cars of the 1970’s, and which may be the basis of the designs of many of today’s exotic sports cars. The guy who tested the car and told about his experience with it, did say that he could not drive it for more than one hour before he had to stop and get out, or he would be in pain. And these cars also have very limited storage capacity.

So, if you do have a great windfall, and really want that Ferrari, do your homework, and think about these things, before deciding if you really want an exotic car for your next ride.

Happy motoring!

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And thanks for reading!  🙂

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Why I Prefer Small Cars

When I was a kid, I liked big cars and sports cars. Sports cars looked good and were fast. And large cars were roomy, impressive, had the most options, and suggested wealth and prestige.

I thought that small cars tended to have fewer options, were clunky and clangy, and weren’t fun to drive.

But, having gotten older and now that I drive, I’ve certainly revised those opinions. Especially since visiting an annual auto show every year for the past 8 years.

Some of the opinions I had were true, such as large cars being roomier, and sports cars being fast. But I also have seen that larger or sportier isn’t always better.

However, large cars use lots of gas. Ever hear the term, “gas guzzler”? Large cars of the 1970’s often had this label once gas prices started surging after 1973.  They’ve gotten better over the years as surging gas prices have helped put pressure on automakers to increase gas mileage, but a smaller car will still use less gas and often have the same, or even longer, driving range than many larger cars.

Large cars also take up more space. This can mean a more difficult time trying to find a parking space or, for some drivers, like me, a feeling that the car is too wide for the lane. I can cope with the “too wide for the lane” feeling, but some drivers may have more trouble with this. The term, “boat” comes to mind. I find that smaller cars are just far more maneuverable in tight spaces and, while driving, I don’t feel as if I will sideswipe the cars on either side of me if I drift so much as a micron to either side.

What about options? Well, it is probably still true that the larger a car is, the more options it will offer, as the “flagship” car of nearly any automaker tends to be the largest car that automaker produces, and will be the most expensive, and so will offer the most options.

But, automakers have come to realize that many people in these gas price and mileage conscious times are opting for smaller cars, and so, smaller cars are now coming with a greater offering of options once reserved for the larger models. These include moon-roofs, advanced stereo systems, power door locks and windows, electrochromatic mirrors, and gps navigation units, among others.

And of course, the smaller cars still get the best gas mileage, for the most part. After all, gas mileage has been improved in all sizes of cars, so that now, while 20-25 mpg for larger cars is not uncommon now, small cars can often do 35-40 mpg!

Then there’s handling. Small cars do tend to handle better and are less likely to have that “heavy” feel on corners or when braking or accelerating.

What about sports cars? Well, yes, they are small, but, in compensating for horsepower, they, too, suffer in the gas mileage department. And, they can be very cramped, low, and uncomfortable. Plus, they can be very expensive, especially the exotics from Europe.

Small cars that are not sports cars are not as cramped as sports cars are, though they still don’t have the interior room of larger cars. However, where interior room is concerned, some small car models are, and have been, better than others, and many small car models have been greatly improved in this area.

And where insurance is concerned, the small cars usually come out best as well. After all, how often do people race Corollas and Civics and VW Beetles?

All of the cars I owned were small cars and I’ve been satisfied with all of them. And as the years have passed, it seems they’ve gotten better and better. So, next time you are in the market for a car? Check out the smaller models. You may be very surprised.

If you liked this post, or others on this blog, please let others know about this site! Thanks!

Keep driving and thanks for reading!  🙂