If you are self employed, you will probably have to pay a higher rate for insurance coverage on your personal vehicle, if it is used for business purposes at all. Self employed car insurance rates are generally higher because there is more risk to the insurance company. Often, more miles are put on a car used for business purposes and personal purposes so you end up paying higher premiums.
It's important to be honest and upfront with your auto insurance company when securing coverage. If you don't let them know that your car is used for business reasons, in addition to personal driving, you could find yourself completely uncovered if you are involved in an accident while driving for business. If it's proven that this was the case, and you don't have a business coverage clause in your policy, your insurance company will not honor the policy and they are not required by law to do so.
Furthermore, if you commonly drive with business contents in the vehicle, you must document this to the insurance company and let them know. That way, if the car is stolen or broken into and these things are lost, you will be covered for them. Depending on what the value of these items are, your rates will raise accordingly.
To help combat the increased cost of coverage, it is a very good idea to keep a mileage log. Detail every mile that you drive and not whether it's for personal or business reasons. This will help the auto insurance company better determine what your rates should be and will often cause them to come down.
Source: Ezine Articles