Business car insurance – At glance, there is no difference between business car insurance and private car insurance. A driver that has a private car is mandatory to have car insurance. However, when he/she works in a company that uses cars for commercial usage, his/her employer is mandatory to have car insurance for business purpose although the driver has carried car insurance.
When we look more detail, there is a big difference between those two types of insurance. Car insurance for business purposes is also a vast term. We are going to focus on its types and how to get the best rates.
Types of Car Insurance for Business Purposes
If we talk about private car insurance, we have some types of coverage. Car insurance for business is just the same.
Cars that are commercially used are at high risk of getting accident. The high traffic in the city makes everyone that uses the roads in the same boat.
Public properties and general citizens need something to protect them in case our cars get involved in an accident. In this situation, we will need third party car insurance.
It gives protection towards the third party that can be public properties and general citizens from damage and bodily injury until death. No wonder that the local government requires all drivers of business car carry business car insurance. We need to make sure that all road users are under protection.
Liability coverage will be useful for our driver who wants to be protected against a car accident where he/she is at fault.
This type of insurance gives coverage towards personal injuries and also property damage for other parties. Nevertheless, the car damage and bodily injuries of our drivers will be get protected.
If the driver is at fault and wants to be protected also, we will need collision coverage. Perhaps, this is the primary reason for why our business needs this coverage. We need to make sure our employees can drive the cars in peaceful feeling.
Business car insurance also protects our driver who gets accident with other party that does not have car insurance or sufficient coverage.
The type of this insurance is called underinsured motorist coverage. It is equally important since the number of drivers on the roads does not carry car insurance or do not have sufficient coverage.
This is How to Get Business Car Insurance
We do now realize that this insurance is highly important. But, our business car may still be small and purchasing this car insurance can be a burden for our business. We need to make sure that we get the best rate.
We have several ways to get lower rates. One of the ways is by educating our drivers in driving safety. We need to make sure they get safety classes or driver’s education courses. After the course is done, find a company that give discounts due to this safety course.
Business car insurance company really takes into account our car condition. They will investigate whether or not our commercial cars are secured. To get this, we have to ensure the cars are stored as safely as possibly by parking them in a locked garage. It will be a good way to get qualified for discounts.
Besides, when driver recruitment, make sure we only hire drivers with good driving records. Review the driving history from each driver who applies the position. Insurance company highly considers drivers with good driving record to get lower rates.
Make and model of the cars will also be considered. Some model of cars has good safety ratings. If we want to get lower rates of business car insurance, we need to be sure the cars meet these requirements.