Who is the Insured?

The auto insurance policy defines the insured as the person or entity that holds title to the vehicle. Owners of small businesses often use the same vehicles for both personal and business purposes. Problems may occur if the insurance is not written in the name of the person or entity with title to the vehicle.

For example, John Smith owns the XYZ Company that owns the vehicle that Smith drives for both business and pleasure. Smith told his insurance agent that he owned the car so the agent put Smith's name on the auto insurance policy and not the company's name. Smith is involved in an accident. There may be problems when he attempts to collect on an insurance claim to repair the damage to the car because the insurance policy requires that the owner of the vehicle be the principal insured.