A two or four-door automobile usually has a hatch or a trunk. The insurance industry might also classify this type of vehicle as a sports car. Clients use this type of automobile to commute to and from work or school and carry family and friends up to five passengers. This category also includes a minivan with seating up to eight people not meant to carry employees or passengers for hire. You may also define a light pickup truck as eligible for a Private Passenger car policy if it doesn’t exceed one ton in weight and is used strictly for personal use.
Carrying passengers for hire, such as Uber or Lyft, or delivering newspapers or food rarely qualify for Private Passenger Auto insurance. Some insurers will offer an endorsement for the Private Passenger Auto policy, which modifies and extends coverage for the periods when the driver is waiting for a passenger to order a ride or is on the way to pick them up, not when the passenger is on board. Suppose you use your vehicle for any money-generating activity. In that case, we encourage you to seek a Commercial Auto policy so the insurance company can correctly classify the risk and charge for the appropriate business class. Using your car commercially with a Private Passenger automobile policy can lead to a canceled contract and a denied claim. Talk to us. We’ll guide you through the classification maze to place the correct coverage on your vehicle.