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Business Car Insurance: Making Sure It Works for You


In purchasing any product, the primary factor to consider is price. With the global economic crisis well underway, clients are looking for new ways to gain customer value without compromising quality. The insurance industry has had its fair share of challenges throughout the economic depression, but more and more individuals and organizations alike have been coming forward to discuss newfound information on how to get the best insurance deals out there.

As for business car insurance, organizations have always tentatively taken into consideration the coverage of the policy in relation to how a particular employee would care for the vehicle. It is actually very important to look into how an employee would respond to the responsibility of having an automobile ready for his or her disposal. It is imperative to be keen about even the littlest details, such as mileage limit and parking. Knowing how far one travels and where one parks his or her car can actually help determine the feasible price for the premiums. More importantly, business car insurance specifically provides coverage for the business use of the vehicle—a benefit that is not offered by personal automobile policies. However, if a particular company car is used for both personal and business use, the policy holder must specify what kind of extra coverage they want for the vehicle.

Typically, car insurance companies provide three general types of policies, the first catering to private and seldom business use, which covers personal use, commuting to and from work, and the occasional business purpose trips. Policies that cover both private and business insure everything covered by the personal car insurance with the business traveling extras to top it off. A third and more specific type of car insurance is for commercial vehicles—automobiles that are purposely used solely for the business. With these types of policies, clients won’t have a problem in determining which policy is right for them.

Taking a closer look at business car insurance types, however, companies typically offer a wide array of policies that can be categorized into three general types. Physical damage insurance responds to the financial needs required by car repairs resulting from a collision. This type of insurance may also cover non-accident related damages, such as those resulting from theft, vandalism, and fire. Liability policies, on the other hand, cover physical injuries sustained by the driver and/or the people involved in the accident. As for medical payments, this caters to the bills resulting from hospitalization following an accident, as long as the person involved was inside the insured vehicle.

Knowing exactly what you want out of your business car insurance and the circumstances under which it will be used is a key factor in making it work for you.