Business car insurance provides protection to individuals who own companies or businesses from unfortunate incidents that can cause financial loss. This type of insurance provides coverage for vehicles used for business operations like client servicing, employee pickup, product delivery, and business travel. Also known as commercial auto insurance, having this policy protects vehicles from theft, road accidents and claims from auto collisions.
Depending on where you live, your state’s insurance laws may require you to purchase a business car insurance policy. You may want to consider getting a separate business insurance policy if you are using your car for both personal and business purposes. Every insurance company has its own definition of “business use,” and you might have a problem with claims if your personal insurance policy distinguishes between personal and commercial vehicles.
Here are some effective steps you can do to lower your premiums:
- Make sure to hire a company driver with a clean driving record.
- Have your company driver attend a road safety program to improve his or her defensive driving skills.
- If there is more than one vehicle to insure, you might want to consider getting a multiple vehicle insurance policy. It is possible to avail of multiple insurance discounts if you have this policy.
- Request to have higher deductibles. This is a personal obligation that you must pay first before you reimburse the claims.
- Look around for more options before deciding to renew your business car insurance policy. You have to get quotes from at least five different providers to get the best quote.
- Use your “no claims” bonus to request for lower premiums. Auto insurance companies will ask you to pay lower premiums if you have fewer claims on your previous policy.
- Make sure to have vehicles checked regularly.
Types of Coverage for Business Car Insurance
Bodily Injury Liability Coverage
This coverage pays for bodily injury or death resulting from an accident for which you are the negligent party. It provides you with a legal defense.
Property Damage Liability Coverage
This coverage pays for damages to other people’s property caused by your car. It also provides you with a legal defense.
Collision Coverage
This coverage reimburses the damages caused by your car in an accident. You may discontinue or decrease your collision coverage if you want to save on premiums.
Comprehensive Coverage
This coverage pays for damages or losses from fire, extreme weather conditions, vandalism, theft and other non-collision accidents. This coverage requires a policy holder to pay for deductibles when a claim is made.
