Non owned auto insurance – Certain car that is owned by your business must be listed on your commercial auto policy but somehow your business may use other vehicle that is not listed on your policy, thus you need to buy separate non owned auto insurance to protect it, so that you don’t need to worry about its safety because the insurance coverage will give maximum security. The vehicle may owned by your employee but you still have to be responsible in securing their vehicle.
Types of Non Owned Auto Insurance Coverage
Actually, there are certain ways to secure your non owned vehicle and it usually depends on the need of your business. You need to pay attention to the types of coverage because it will become the main key for your business activity since you will use it in a long period of time.
The first type of non owned auto insurance is employer’s non ownership coverage. This coverage will help you to protect your employer’s vehicle that is used for business purposes.
This coverage will be effective if the vehicle is not contracted on your behalf. So, for better protection, you are required to purchase this coverage.
However, this coverage doesn’t include protection for your employee and you personally because this coverage will work in the event if your company is sued by other person as a result of an auto accident at you and your employee cause. Another type of coverage you should know is hired auto coverage.
Hired auto coverage gives liability protection when you are operating borrowed vehicle. The coverage will help you to pay some losses if only another parties involved in accident sue you for their damage. And the last one is any auto coverage that provides liability coverage for those vehicles that are already listed on your policy.
Non Owned Auto Insurance: Why You Should Have It
Although you might have a small business but having non owned auto insurance is very essential. In some situations, you cannot deny that the need of maximum protection is getting higher.
For instance, you ask your employee to drives his personal vehicle to pick up lunch for other’s employee or when you travel to another city for business purpose with the rental car. The coverage will kick in such situation when there is accident that forces you to pay some amount of money.
The coverage for non owned vehicle is also important if you have tight budget yet you need to rent truck or car in order to support the life of your business. To prevent financial loss from the bad accident that may happen, at least you should buy minimum coverage.
You can still find affordable rates if you can’t purchase full auto insurance coverage. But before you buy your auto insurance make sure that you have adequate knowledge about some factors that might affect your auto insurance rates.
You can’t dream like having affordable rates if you don’t meet the requirement of the insurance company because you need to keep several ways in check.
You must make sure that the vehicle operators’ driving record is good. Moreover, you need to check for how long the vehicle is driven for work.
Those factors are greatly affecting the rates so that make sure to reduce the potential risk by doing preventive action.
Lastly, you can contact independent agent if you kind of busy finding the non owned auto insurance by yourself. Make sure to choose an insurance company that provides discount for the new customers so that you can do money saving by that.