Basics of Business Auto Insurance

If you have your own business, buying a business car insurance policy helps you do more with your business. If there is a chance that your business vehicles may be used by employees to drive to work sites or haul equipment or products. It is vital that you have comprehensive company car insurance. There are many contingencies out of your control that business auto insurance can cover, such as vandalism, weather damage, or being hit by an uninsured driver.

There are situations in which personal auto insurance coverage covers your business needs as well. For example, someone who works as a personal representative for Avon, Tupperware, or some other home based business that has no other employees should do fine with a decent personal auto insurance policy. However, some cases are not so cut and dry so business car insurance might be needed.

There are decision engines on many websites that allow you to input information about your business, your vehicle(s) and your employees to determine whether you need to buy a separate business auto insurance policy. One of the main determinants is whether you have a car for personal use and occasionally use it for your business versus whether you have a separate vehicle used exclusively for the business.

A good business car insurance policy should include the following types of coverage: coverage for employees using their cars for business purposes; business automobile liability; coverage for cars borrowed or rented for business use, medical liability coverage, uninsured/underinsured motorist coverage, and collision and comprehensive coverage.

Depending on the nature of your business, you may need business auto insurance for a business truck or van, a dump truck, vehicles used for seasonal business. The more you know about the specifics of what you’ll be insuring, the more accurate a quote you’ll be able to get when shopping around.

While policies and coverage may vary by state, many times you can get discounts on business auto insurance. Businesses that have operated for more than three years are sometimes eligible for “experienced business” discounts. If other aspects of the business are insured, the same insurer may charge less if you buy your business car insurance from them. Businesses that employ drivers who have a commercial driver’s license (CDL) can also often get discounts on business car insurance.

Other ways to save money on your business auto insurance include raising deductibles, paying the entire premium at one time rather than spreading it into monthly payments, and paying by electronic funds transfer (EFT). For some insurers, EFT will cut out the normal check processing fee they charge. And if you insure multiple business autos with the same insurer, you can get a multi-car discount.

Owning your own business requires a lot of responsibility, and it may seem as if you are constantly writing checks for business related expenses such as business auto insurance. However, you should make it a top priority to have your business and its automobiles adequately insured to save yourself major legal and financial headaches later on.

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Basics of Business Auto Insurance

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