A business car insurance is a type of insurance policy that protects individuals who runs their own companies and businesses from possible financial losses due to accidents. Business operations such as client services, picking up of employees, delivery of products , and business travels are covered as well. Also known as commercial auto insurance, this policy also protects the vehicle from possible theft, road accidents and claims from auto mishaps.
Depending on your location, your state’s law may require you to procure a business car insurance policy. However, you may want to get a separate business insurance policy if you use the vehicle for both personal and business functions. Every insurance company has distinct definition of “business use,” and you might encounter problems in the future when claims are raised between personal and commercial vehicles.
Below are some tips that you can do to lower down your premiums:
- Hire only a company driver with a clean driving history.
- Encourage your driver to enroll or participate on road safety programs to improve his or her driving skills.
- If you own more than one vehicle, you might want to think about getting a multiple vehicle insurance policies. They normally offer discounts when purchasing insurance by bulk.
- Try to request for a higher deductible. A personal obligation to pay first before you reimburse the claims.
- When renewing for your business car insurance, look around first and try to find another options. Get at least five different quotes from different insurance companies and select the best quote that will suit your needs.
- To request for lower premiums, use your “no claims” bonus. You will be surprised that most companies will extend low payment premiums if you have fewer claims against your premiums policy.
- Always make sure that your vehicles are properly maintained.