How And Why Cars Are Categorized Into Classes Of Use For Purposes Of Insurance

Posted on: 5 April 2017

How you use your car is one of the things auto insurance companies consider when determining your coverage rates. This is why your auto insurance company will ask you the "class" use when you're seeking coverage quotes. There are various classes of car use, but these are the most common:

Social Use

Telling your insurer that your car is for social use only is like telling them that the car is for domestic or pleasure use. These terms refer to the "normal" or day-to-day uses of the car and doesn't include going to school or work. Social or pleasure use means using the car in your social life; for example, for visiting friends, going to church, or taking your family out for dinner.

Most people don't do these things every single day, which means social use usually leads to lower mileage than commuting. In fact, most primary cars rarely fit this category because they are also used for other things. In most cases, those who place their vehicles in this category do so for their secondary cars.


A commute car is the one you use for going to work or school; this is probably the most common category. These are things you do every day or most days, so your commute car is likely to be your primary car. Also, commute cars tend to rack up more mileage than social cars.

Business Use

Just like the name implies, a business car is the one you use for activities where you expect some return on investment. For example, if you use your car for delivering pizza or your home-baked pies, then it's a business car. Other business uses of a car include picking up business supplies, attending business association meetings or making sales calls.


A farm vehicle is used in agricultural production zones such as farms or ranches. For example, if you have a pickup truck that you use to deliver hay to your animals or take products to the market, then it is a farm vehicle. Due to this definition, farm cars are usually found in rural areas.

Note that a car can, and most cars usually do, have more than one type of use. You aren't supposed to pick the most convenient use for your car insurance company; you are supposed to use all uses of the car. Therefore, if you use your car for going to work and taking road trips with your friends, then that car will be classified as a commute and social one.

For more information on auto insurance, contact an insurance agency like Insure With U.S.


Little-known Insurance Tips

While I have had auto insurance ever since I bought my first car at 16 years old and home insurance ever since I bought my first home several years ago, I have to admit that over the years I knew very little about insurance. I tended to just look at the price of the coverage and sign the paperwork without really looking into the pros and cons of each policy. After my friend was in a car accident recently (thankfully, she is okay!) and she said she had to pay for some of the damage to the other vehicle out-of-pocket even though she had a minimum state coverage auto insurance policy, I decided to put a lot of careful research into insurance policies and what they really offer. I want to help others by sharing the information I have learned on a blog. I hope I can help you!