A Guide to Purchasing Commercial Auto Insurance
All motorized vehicles, especially those who are used in businesses need commercial auto insurance. Automobile liability insurance required by most state covers medical expenses for injured persons and damages to the property of other individual as a result of motor vehicle accident brought about by the insured negligence. Commercial car insurance policy however have a higher liability limits provisions covered rented and other non-owned vehicle including company car driven for company businesses.
If you are a business owner, there is auto business insurance specifically designed for companies like yours. You maybe a small business or privately owned corporations, partnerships and sole proprietorships with more or less 100 employees and maybe you are using vehicles such as trucks, pickups, vans and SUVs. Insurance carriers divide small businesses into industry specific categories as follows; Landscaping/Snowplow, Artisan and Contractor, Food Service and Restaurant, Courier and Delivery vehicle, Farming and Livestock, Wholesale Business, Non-profit and Religious, Other Small Businesses.
Other factor would fall under seasonal, what season of the year you use the vehicle and a new business vehicle insurance.
The above factor would be considered in coming up with the amount of premium the carrier will charge your business.
It is also important to take note of these factors: who owns or leases the vehicle, is it the individual or the entity; that drives the vehicle? Is it the owner or the employee?; How vehicle is used? Is it in transporting people, delivering packages or carrying hazardous materials? These and more will greatly affect your premium, however when not properly coordinated with your carrier would further cause damage to your business. So, in insurance transparency is the name of the game.
Other tips which will be helpful to you are as follows: if your business owns or leases the vehicle, the name must be listed and the principal owner in the policy. If you are relying on personal auto insurance or personal umbrella liability policy, make sure to look closely at the provision exclusion, otherwise you might end up not being covered at risks most likely you will meet as business owner.
If an employee operates a company car, make sure he has excellent driving records or properly trained for the purpose.
Safety devices installed in your car such as anti lock brakes, side air bags, automatic seat belts and daytime running lights will lessen the cost of premium.
Other factors such as; installation of anti theft alarm system and global positioning device installed in the vehicle, geographic locations, no claims previously filed by owner certainly yield low premium.
On the other hand, there are some companies offering more or better services than others such as customizable business car insurance. With this plan includes having auto liability, medical payments, comprehensive coverage, collision coverage, Uninsured/Underinsured provisions, covers, auto borrowed or rented, and employees using their cars for business.
Other insurance providers will also offer losses incur against a sudden traffic shift causes to lose control, hail or vandalism damages to your car, and or uninsured driver hits your vehicle.
No matter what coverage you choose to take, business owners must bear in mind that it always pay to insure, you protect your property and yourself from great economic loss if you chose otherwise.