Who needs business car insurance?
As the name suggests, this form of insurance is for business vehicles. All businesses do not own vehicles, but several do. Some may own only one and others may have as many as ten. Business vehicles range from vans to pickups to huge trailers. Business car insurance protects the owner and the company from liability that relates to his vehicles. It also extends protection to the driver of the vehicle. If you have a business that does not use any vehicle, you can skip this one.
Business location and scope of operations:
Business location can be a big factor for deciding the rates that you get. If your location is on a hill or near a mine, the rates can be quite steep. Again if the scope of operations extends over several states, the premium will be higher. Auto insurance providers judge the risk level of the client’s business before offering a rate. On the other hand, if your car plies just a few short distances in a day inside a city, the rate might be lower.
Theft prone areas:
Some areas are notorious for car and pickup thefts. If your business happens to be in a high risk area of that sort, you are looking at higher rates. Car thefts are quite common in some areas and vary from 3 percent to as much as 9 percent in other areas. Installing anti-theft gadgets like alarms helps to reduce business car insurance.
Type and age of the vehicle:
As with personal auto insurance, the make and age of the vehicle plays a big role in premium deduction. The older the vehicle the higher the rate! Sturdy and stable vehicles tend to be favorites for insurance providers. Foreign makes of trucks and trailers may again attract higher rates as spare parts are not easily available.
Non-owner insurance:
Your business may involve the transport of goods that does not belong to you. Transporters often come under this category. In this case, you may have to apply for non-owner insurance that covers you for liability for someone else’s goods.
Fleet insurance:
If you own several business vehicles, applying for fleet insurance might be a cheaper option. This is similar to a group insurance for vehicles.
Business car insurance charges are usually higher than personal car insurance. Sign up with a company that specializes in business car insurance.
