A lot of business enterprises today do not fully appreciate the importance of business car insurance and if they would have it their way, would opt not to have their company vehicles insured. If your business requires a lot of travelling or where travelling is necessary, getting a car policy for business is essential. Accidents and mishaps are inherent risks with vehicles and costs of repairs or replacement can be extremely prohibitive if you will not have your vehicles insured.
However, what is business car insurance exactly and what differentiates it from personal car insurance? The main and glaring difference between the two is with personal car insurance your vehicle or vehicles get covered all the time, regardless if it is used for business or personal purposes. Business car insurance, on the other hand, only provides coverage for the time the vehicle is used for official business or during office hours. Thus, if a company car collided with another vehicle during the weekends when it should ideally be parked, the insurance company would not pay for damages. Or say an employee used a company vehicle to run some personal errands, maybe to pay bills and on his way back figured in a vehicular accident, the company would not be eligible for any compensation or claims from insurers.
Car insurance like this is not recommended for businessmen who work from and who rarely go out for business. Businesses that employ sales executives, collections or companies related to construction, among others, fit the profile of enterprises that need this.
If you are not sure whether your business needs car insurance, consult an insurance broker or agent for expert advice or opinion.
Coverage like this is similar to that of personal car insurance in that insurers cover vehicles for property damage, bodily injury, and the like.
Mileage is one thing that companies consider when computing for rates. If possible, use company vehicles sparingly so that you can enrol in low mileage discounts. A lot of employees are guilty of using company vehicles recklessly. Staff should be reminded of the importance of maintaining assigned vehicles and to regard them as their own.
Moreover, make sure that all drivers are screened for driving behaviour. People who display aggressive driving styles should be trained for road courtesy and proper driving habits. Failure to correct bad driving habits may cost the company more in the long run in the form of higher premiums. Road accidents and chronic violation of traffic rules would classify your company as high risk which means higher fees.
The peace of mind that business car insurance offer to companies is invaluable and enterprises should make it a priority to have company vehicles covered.