Is a Landlord Travelling to Properties Considered Business Use for Car Insurance?

There is one thing that many landlords and property managers don’t think about. And that is driving. Managing property often involves a lot of driving… from apartments showings to meeting maintenance people to everything in between. A natural question from all this driving becomes: is a landlord travelling to properties considered business use for car insurance? That becomes important when you’re thinking about what car insurance you should have, as well as when taxes come around and you have to think about all that gas you paid for throughout the year.

We put a lot of miles into the work we do, so we understand. Our property managers in Atlanta as well as other cities can rack up the miles, and so knowing just how it all is going to shake out in the end, and whether it’s fully covered in the insurance we have or even whether we see some of that come back to us with taxes… it can mean a lot when it comes to the bottom line. Let’s explore this question and answer a few frequently asked questions involving landlord travel and car insurance.

Table of Contents

• Is a Landlord Travelling to Properties Considered Business Use for Car Insurance?
• FAQ
• Why Hiring a Property Management Company Can Make All the Difference

Is a Landlord Travelling to Properties Considered Business Use for Car Insurance?

Being a landlord often means a lot of time in the car… checking on units, meeting contractors, doing showings. That naturally raises the question of what your car insurance thinks about those trips. Personal use is one thing, business use is another, and the line can feel a little fuzzy when you own rentals.

Most insurers treat landlord errands as business use once they happen with any regularity, even if you only own a few units. A standard personal auto policy may still work if your trips are occasional and light. So when you are wondering is a landlord travelling to properties considered business use for car insurance, if it’s on the lighter side, it may not be something you worry about. Either way, you should have those conversations. Really, you should tell your carrier what you do first. Many companies can add a business use endorsement or rate you for light business use, sometimes called artisan use, which is often enough when you are driving yourself to showings, meeting vendors, or picking up small supplies.

There are situations where a commercial auto policy is the better fit. If the vehicle is primarily used for your rental business, if you make frequent site runs every day, if you transport sizable tools or materials, if the vehicle has signage, or if employees or contractors drive it, insurers tend to view that as commercial exposure. Some umbrellas also ask for specific underlying limits, and they may want a commercial auto underneath if your usage looks like a business. Carriers set their own rules, and states handle filings differently, so get the answer in writing from your agent. Start with the question is a landlord travelling to properties considered business use for car insurance, but make sure you think of all the questions you might want to ask.

Here is insurance company J. Edward Knight & Co. on the topic:

If you regularly drive between multiple rental properties for maintenance, repairs, inspections, or tenant meetings, you’re likely engaging in business activities. These types of activities are better suited to a commercial auto policy.

One last thing to think about is the tax side. It doesn’t decide your insurance category but does affect your recordkeeping. Miles driven for rental activity can be deductible, but commuting to a non rental job is not. Mixed purpose trips should be split, so keep a simple log of dates, destinations, and reasons. Requirements and underwriting language vary by state, and what a carrier is comfortable with in Massachusetts or Georgia may differ from another state, so a quick call to your insurer is the cleanest way to match coverage to how you actually use the car.

FAQ

How much landlord insurance do I need?

If you’re asking yourself how much landlord insurance do I need, you’ll find that it has a lot of factors. It depends on the value of your property, the type of tenants you have, and your appetite for risk. When you’re looking at landlord insurance in Georgia, for example, you might want enough coverage to rebuild the structure entirely if it were a total loss, plus liability coverage to protect against lawsuits from injuries or damage claims. A lot of landlords also add loss-of-rent coverage so they’re not stuck without income if the unit is unlivable for a while. So there is a lot to consider.

Do I need to tell my card insurance company that I’m visiting rental properties?

Yes, and it’s worth being upfront. If you’re occasionally swinging by to check on a unit or meet a plumber, your personal policy may be fine, but if you’re making these trips regularly or hauling equipment, your insurer might classify it as business use. The risk is that if you have an accident and they discover your trips were business-related, they could deny the claim. A quick conversation with your agent can help decide if you need a business-use endorsement or even a commercial auto policy.

Can I deduct mileage for visiting my rental properties?

In many cases, yes, you can often deduct mileage for visiting rental properties. But it has to be tied directly to your rental activity. Trips to collect rent, meet contractors, or show the unit are usually deductible. Personal errands are not. If a trip mixes both (say you check a property and then grab groceries), only the mileage for the rental portion counts. As suggested above, keeping a simple log with the date, destination, and purpose will make things easier.

Why Hiring a Property Management Company Can Make All the Difference

Managing or owning property comes with so many questions about insurance, everyday maintenance, and so much more. It may start with is a landlord travelling to properties considered business use for car insurance, but that may open up a world of other questions. It can be overwhelming. There’s got to be a better way, right? There is! Hiring a property management company can be the best thing for you. You don’t have to do it alone!

Contact Us Today! 

If you’re looking for a comprehensive, professional rental management team to handle it all, consider Bay Property Management Group. Our team of qualified pros offer full-service rental management… so you don’t have to stress about the day-to-day tasks of owning properties. So how about it? If you’re looking to maximize your rental business and overall success, contact BMG today. Learn more about our property management services in Alpharetta and Atlanta areas, as well as Baltimore, Philadelphia, Virginia, Georgia, Texas, and elsewhere.