Any job that requires an increased amount of driving carries an increased chance that an accident will occur. Personal insurance includes the idea that a person uses their car to get to and from work, but that the car remains idle while the driver is at work. Any job that requires business use of your personal vehicle has different insurance requirements.
What Real Estate Agents Do
Unlike an insurance agent, who can fulfill his duties over the phone in an office setting, a real estate agent is often on the go. A typical day could involve meeting with both buyers and sellers at locations of their choice, visiting houses for sale, photographing properties for listings, visiting or conducting open houses or meeting people to arrange signatures on purchase documents. The daily workplace location and the environment is always changing, so a car is a very important tool to complete the work at hand.
Relying on Personal Car Insurance
If a realtor carried only personal car coverage and experienced an accident in the course of her duties, she may not have the insurance coverage she expects. In fact, an insurer is completely within rights to deny claims stemming from an incident that occurred while a private automobile was used to conduct business.
Commercial Endorsements and Insurance
To maintain car insurance protection, some form of commercial coverage must be obtained. What’s available depends on the company insuring the vehicle as well as the particular use the real estate agents expects from her car. It is possible to locate a commercial endorsement for personal car insurance. Essentially, this is a rider added to an existing policy that covers business use of the driver’s vehicle. There may be limits to the amount of commercial use, perhaps through mileage or number of hours. This may exclude a busy real estate agent who logs a lot of miles. A new or part-time agent may qualify. Your car insurance provider is the best source of information for these questions.
Commercial insurance is likely the best way to go for the full-time real estate agent, particularly if she is showing homes with clients in her car. While the costs will be substantially higher than personal insurance, she is assured of having liability coverage in the event that anything should happen while doing her job.
Commercial insurance or commercial endorsements are deductible from real estate income. The cost of car insurance is a reasonable expense for the purposes of earning revenue for the business, so the Canada Revenue Agency allows insurance deductions. Since this, in turn, reduces the amount of tax you owe, it effectively reduces the cost of your real estate car insurance coverage.