State Farm Auto Insurance Practice Test

In the context of the practice test, how often must a vehicle be used for business to qualify for coverage?

1. At least 20%

2. At least 30%

3. At least 50%

4. At least 70%

The correct answer is: At least 50%

To qualify for coverage under a business use policy, a vehicle must be used for business purposes at least 50% of the time. This threshold is significant because it differentiates between personal vehicle use and business use, impacting the type of coverage that applies. When a vehicle is predominantly used for business, it likely incurs different risks compared to a vehicle that is primarily for personal use. Insurers assess these risks to determine appropriate coverage options and premiums. If a vehicle meets or exceeds this 50% usage threshold, it can be classified under a business use policy, providing necessary coverage for business-related activities, which may include using the vehicle to travel to meetings or transporting goods or clients. This distinction is crucial for ensuring that policyholders have the right protection for their needs.