Private Passenger Car

Definition - What does Private Passenger Car mean?

A private passenger car, in the context of insurance, is an automobile used for private needs as opposed to business uses. These vehicles are generally defined as having only four wheels, and they do not carry passengers for money. Thus, it is a distinction used to classify cars for insurance purposes, as different categories of vehicles represent different risks.

Insuranceopedia explains Private Passenger Car

The classification of a person's vehicle can be highly relevant for coverage purposes. For example, if a policyholder only insures their car for private passenger use but gets into an accident while using their car for business, the claim may be rejected.

Many people, such as landscapers and Uber drivers use their vehicles for business needs alongside personal ones. For such people, it can be highly important to get a good commercial auto insurance policy that covers business use to prevent coverage gaps that can end up costing the business significantly.

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