Business car insurance is for vehicles used for company-related purposes. It could be those cars for lease, trucks used for deliveries or public transportation (like taxicabs), or cars lent to employees for field work or client calls. It is differentiated from personal car insurance which is used mainly for personal means like driving oneself to work or picking up children from school.
Company owners are urged to get business car insurance because it has key features not available in personal car insurance. Business cars will be better secured and protected in case of accidents although it will be charged a higher monthly premium.
The first essential feature deals with time. A personal car can be used 24 hours a day at the owner’s disposal. A business car, however, has limited usage. Its insurance premium is based only on the number of hours it is used in a day or week. It will therefore be cheaper if lower mileage is declared. It is a different story for delivery trucks which are out on the road most of the time. There will be additional charges depending on the cargo.
Another key feature of the policy is protection from employee abuse. It is difficult to track down employees once they are out on the road. One could easily say he will visit a client to give out sample products of his company when he is really going out to meet his friends for lunch. After work at night, he could also use the business car for other personal matters. With business car insurance, insurers install a metering system to set apart personal and business mileages. Hence, if an accident happens at night, which is clearly outside of business hours already, the insurer can deny any petition for claims. Instead, the employee will be held liable for the damages.
Business car insurance also offers more protection for vehicular damages. This is because they consider the fact that business cars have a higher rate of wear and tear. It is more difficult to maintain a car used by multiple drivers with different driving habits. Some also tend to be careless while thinking they did not buy the car themselves. Insurance providers make allowances for frequent repairs by charging a higher premium. At first glance, it may seem expensive. However, once a business car frequents service centers, a company owner would realize that the business insurance he got was worth it.
A business insurance policy also protects the driver. He may go on with his daily routine at work knowing that the company he works for has insured him if ever he figures in a road accident.