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What is Business Car Insurance?


Hardworking business men see the importance of the business car. It transports your marketing plans and techniques from east to west, north to south. And the best thing about it is that it allows you to bring your business’ mouthpiece – your salesman or saleswoman – into the doors of your consumers. Correspondingly, a business car is a good investment. And like all good investments, it needs to be protected as well.

Ever since the invention of the first automobile, the use and the importance of the business car has seen a rapid rise. And sure enough, in the boom of 80s consumerism, the use of the company car or business car became a basic concern in almost every business. This was initially met with skepticism, especially from the government. Soon enough, they began to see an opportunity to raise taxes on company vehicles and on the business car insurance industry.

So what exactly is business car insurance?

Business and personal car insurance are the same in such a way that both are necessities in life. The difference between both lies in the specifications and the price. While personal car insurance requires for the owner’s driving record, company car insurance will require you, the business owner, to look for an applicant with an almost perfect driving record. If your employee happens to have a record riddled with demerits or sanctions, then you might be looking at a liability.

You can get better flexibility with a business policy than that of a personal car insurance policy. This is mostly due to the fact that running a business entails different scenarios or circumstances. A business can use the automobile to transfer items or products from one place to another. Should any untoward incident happen, your business car insurance will take care of the expenses. However, any accident that occurs off business territory will not be covered. Correspondingly, you would also need to keep track of the miles and know which ones were used for business and which ones were used for personal activities.

Some owners may think that because their business only requires limited time on the road, they do not need to pick up a business car insurance policy. However, this is not always the wisest path to take. Some insurance companies will reject your insurance claims once they find out that the car insured with a personal coverage plan is being used for business purposes. In this light, it is best to inform your insurance agent of this little detail so he or she can make the necessary adjustments. And this way, too, you would find yourself in a dump when you need insurance coverage the most.