When you or one of your employees drives a car involved in your business’ operation, it is necessary to have business car insurance to provide protection for you as well as for your business. Insurance coverage for business vehicles is a bit different from your everyday car insurance. For this reason, it’s important to buy your coverage from an insurance company that provides policies designed specifically for businesses.
When You Need a Business Car Policy
You need business car insurance if you transport people at all. It is also necessary if you use a vehicle that is out of the ordinary, such as a bus or lorry that carries special equipment. You can ask that your insurance company provides you with an individual assessment for your needs, based on the uses of your car or other vehicle. You might not have to go to a company that specialises in business car policies to provide what you need and have a policy tailored to you. Whether you allow employees to use a car just when there is the need for travel or you provide them with cars as a part of their position with your business, insurance is essential. If your business has a fleet of cars, most insurance providers may offer a significant discount. Don’t let the offer of a discount stop you from looking further, though. Since most providers offer them, you can feel secure in shopping around a bit.
Talk to Your Business Insurance Company
If you have insurance policies for other things related to your business, such as business liability or insurance on the building, get in touch with your insurance agent before going somewhere else. There is a good chance that they offer business car insurance. Insurance companies that provide more than one type of coverage like this offer discounts for multiple policies, that may save you some money. Some business insurance providers do not offer policies to all businesses, however. Some may offer coverage for those who travel for electronics installation while not providing insurance to businesses that have services for transporting children because of high risk. Be sure to ask if the company has any restrictions on business vehicle activities before you purchase a policy with them.
Insuring Your Employees
If it is feasible, only insure drivers who are age 25 or older. Drivers under 25 may be more expensive to list on any car insurance policy, but particularly costly to put on business car policies. This is because business car insurance typically provides far higher policy limits, so they view younger drivers as exceptionally high risks on a vehicle that is used for business purposes. Whether your employees are over 25 or not, however, it would be a good idea for you to look into their driving history if they will be using a business vehicle. Your insurance company is sure to perform these checks – you should, as well.
Don’t Use Personal Coverage or Cars
Driving a business vehicle while assuming that your personal car insurance policy will cover you in the event of an accident is a mistake. The same goes for using your personal car for business purposes without informing your insurance company first. If your insurance provider discovers that you are using your car for business, they could cancel your coverage. If you have an accident while using your car for business activity, they could have the right to refuse any claim that you try to make. It is not worth the risk and loss of insurance to try and get away with these things without your insurance company’s knowledge.
The Cost of a Business Car Policy
While business car policies tend to cost more than personal coverage because business vehicles are driven more and tend to carry costly equipment, it is not impossible to get an excellent deal. If your employees who drive your business cars are qualified for UK business driving, you may get a discount of up to 10%. However, one way to possibly save money is to use online comparison sites. Many car insurance comparison sites allow you to choose a business vehicle option. You may find competitive quotes and compare price with coverage to get an affordable policy that will still fit your business’ needs.
It may not be too difficult to obtain a cheap quote for a high quality insurance policy on your business vehicles. You simply need to look around. A good insurance comparison site will give you some great ideas as to what kind of coverage you can expect, even if you opt to not buy insurance online. If you already have an agent whom you use for business insurance purposes, he or she is a great person to ask about your business car insurance and they may know about some discounts that you were unaware of. It is almost always worth asking about discounts for various businesses – cheap car insurance companies may provide significant breaks on everything from environmentally friendly practices, such as using hybrid or electric cars, to keeping your distance travelling low so that you cut down on the dangers of long car trips. So don’t be shy – it never hurts to ask!
