Business car insurance is an important part of any business’s financial safety net. Most states require a minimum amount of coverage, including workers’ compensation insurance. Beyond this basic coverage, you can choose specific options and coverage levels as desired. For a good foundation of protection, consider buying a Business Owners Policy, which combines three essential coverage types: Commercial auto insurance for business drivers and commercial property insurance for your business’s location and owned or rented equipment.
Basics of business car insurance
Business auto insurance covers your business vehicles, as well as those of your employees. Depending on your company’s requirements, business auto insurance may cost hundreds of dollars per vehicle or less. Generally, the average cost per vehicle is around $750 a year. Some policies cover non-owned autos, as well, which can cost as much as $100 a year.
When comparing insurance quotes online, look for multiple companies and policies. You can also look for discounts for multiple lines of coverage. Most providers offer discounts for bundled policies, and some may also offer discounts for safety features.
Policy limits
If you own or operate a business and use your car for business purposes, you should consider getting business car insurance. While it isn’t as inexpensive as a personal policy, it can protect your vehicles from damage and liability. The cost of business auto insurance varies widely depending on your needs.
One factor that affects the cost of a policy is the coverage limit. The higher the coverage limit, the more your premium will be. You should assess how much coverage you really need and decide if it is enough. It is not advisable to lower the coverage limits just to save money. In addition, you should consider the risk involved and your budget before deciding on policy limits.
Deductibles
When it comes to comparing car insurance quotes, deductibles can be a crucial factor. You can choose to pay a lower or higher deductible to reduce your premiums. Increasing your deductible can lower your premiums by fifteen to thirty percent, or even more, depending on the amount of money you have available. It is important to choose deductibles that fit within your budget, as well as your savings and credit.
One option for decreasing your deductibles is to enroll in a program with a company that offers lower-than-average deductibles. Companies such as Liberty Mutual will lower deductibles each year by $100 for customers who file claims at no fault. In return, customers will contribute $30 to a fund that grows annually, which will lower out-of-pocket costs.
Exclusions
Business car insurance quotes online may include certain exclusions. For instance, a business auto insurance policy will not cover a personal vehicle that is used in the course of business. Some examples of business vehicles are: automobile dealers, auto repair shops, auto storage businesses, and vehicles used for delivery of products. Other examples include home health and social workers.
Some policies also exclude certain types of property. If you are insuring equipment or a vehicle that is used for business purposes, you won’t be covered if you cause damage. This means you won’t get reimbursed if you hit someone with your vehicle or injure someone else in an accident. However, many insurers offer extensions of coverage for the vehicle and property.
Rates
Getting your Business car insurance rates online is an excellent way to get a more accurate quote and save money on premiums. There are several factors that affect the cost of your policy. The type of vehicle you drive can also have an effect on the costs. A midsize sedan will be less expensive to insure than a Mack Super-Liner, for example. Additionally, your driving history can have a big impact on your rates. A clean driving history and no claims history will lower your premiums.