If you use your car for commercial purposes, such as making
deliveries for your small home business or visiting contacts, then you
need to buy commercial car insurance for your car. Personal auto
insurance policies may deny coverage if the car is used for commercial
purposes, as they generally cover only the regular daily use of the
vehicle (i.e. traveling to and from work and trips for leisure
purposes). This exposes the small-business owner to serious financial
losses if the car is involved in an accident.
Commercial car
insurance, such as traditional auto insurance, covers the repair or
replacement of a vehicle damaged in an accident and shoulders the cost
of any claims for injury or property damage filed by third parties.
There are three kinds of coverage available: private and sporadic
business use, which covers the intermittent use of the car for
commercial purposes as long as the car is not registered for business
purposes and does not represent an important part of your business
income; private and business use, which covers customary use of the
vehicle for commercial purposes by the regular driver or any named
driver; and commercial coverage, which provides coverage where the named
driver uses their personal vehicle as part of their work. You have to
apply for the particular type of cover that you need. If your staff also
use their personal cars in their work, you should also take out
"non-owned auto" policies; this provides coverage whenever a business
uses a vehicle that is not in their name, including the business owner's
personal car.
The simplest way to get commercial car insurance
quotes is from the insurer's official site. Make sure to prepare all the
required information, such as the license number of each named driver
and their driving history, vehicle identification number and make and
model of each car to be covered. Make sure to get quotes from at least
three insurance providers to be able to evaluate rates and other
features and ensure you get the best value for your money.
There
are several ways you can save money on your commercial car insurance. If
your regular insurer carries this type of insurance, you might be able
to get a discount by taking out several types of insurance from him,
i.e. by buying homeowner's insurance and a commercial vehicle policy.
Some insurers might also let you to add commercial coverage to your
regular car insurance as a rider whenever you need it.
You can get
discounts on your insurance through the usual methods, such as making
sure that the vehicles have safety features such as automatic seat belts
as well as anti-theft devices such as car alarms and locking devices
for the steering wheel and always parking the car in well-guarded
parking lots and other safe places. If you are still in the process of
buying a car, then you should consider buying a make and model of
vehicle that will not be charged high premiums by insurers. You can
research this by asking for a commercial car insurance quote using the
model of car you intend to purchase.
