During the application process the agent will ask you if a specific driver needs a furnished or unfurnished auto and it is important to know the difference. If a claim and the vehicle was found to be in furnished use the insurance company could deny the claim or non-renew the policy.
Furnished Auto
Furnished Auto means you can drive the dealership vehicles for personal and work purposes. When you drive a vehicle from inventory to the store, home or any non related business activity this is referred to as personal use. Drivers of the policy that do this type of activity need to be listed as having a Furnished Auto.
Most owners of the dealership will choose to have a furnished auto because they can use the dealership vehicles freely. Many owners will not have a personal auto and just use the inventory to drive. Having a furnished auto with no personal vehicle means as long as they are driving the dealership inventory they have insurance coverage through the dealership.
There is an added cost to have a furnished auto. Costs vary, so it is best to consult your agent.
Unfurnished Auto
Unfurnished Auto means you drive the vehicles for business use only. This could be to and from auction, repair shop, gas, test drives, or anything else considered business use.
There is no additional cost involved in an unfurnished auto.
