Are You About to Start a Business Venture?
Entrepreneurship is highly lauded today as the surest way to success. Having your own business might make you feel that deciding to put it up is by far the most important decision you have ever made. However, one important question you need to consider when running your business is whether you will register your car under a business car insurance policy or maintain the personal one you already have?
If you intend to use your car in your business transactions, it is wise to register it under a business car insurance policy. This policy will cover you when you use your car both for business and for pleasure.
Are You Qualified to Get a Business Car Insurance Policy?
There are certain qualifications that an entrepreneur or businessman must meet in order to avail of such an insurance coverage. The following requirements are usually sought by insurance companies:
- The business car is registered under the name of a company. It may be under one person’s name, provided that he or she is a sole trader, or manages the business alone.
- The business car is used and operated in business transactions.
- The drivers assigned to operate the motor vehicle should meet the age requirement. Most companies prefer to award policies to drivers between ages of 17 and 74.
What will you get out of the package?
Being a businessman, another question in your mind must be, “What do I get out of this?” Aside from making sure your business and your employees are in safe hands, there are other privileges that make this insurance policy a winner. Most policies in business car insurance include basic automobile liability. However, they can offer companies to go for a comprehensive or collision coverage as well. Depending upon the package, this policy may include other privileges such as:
- Replacement of a new vehicle that underwent total destruction in an accident;
- Payment of unpaid loan for the car that was destroyed in an accident;
- Coverage of repair and towing costs;
- Coverage of fees for rented vehicles while one’s business car is being repaired.
Extensive research and survey about insurance companies that offer such deals must be done by the applicant in order to get an ideal and appropriate package for their business.
Aside from companies who use their business car for routine deals and transactions, this insurance is also necessary for businesses that:
- lease or rent motor vehicles;
- allow their employees to drive company vehicles; and
- requires their employees to use personal vehicles in conducting official transactions.