Average Business Car Insurance Costs

Business Car Insurance
Personal vs. Business Use

You may find yourself in big trouble when you get into a minor collision but a major bumper issue while traveling 70 miles away from home for a business trip. A personal car insurance policy would have a few reasons to refuse to cover for the damages, and your liability coverage may be useless for the other party’s damage claims. Personal car insurance policy will talk about SDP or social, domestic and pleasure purposes. Any other reason why you were driving may mean a sudden enlightenment that may be worth not less than $2000 of damage and claims against your own personal bank account or emergency funds. So it is important to determine the exact purpose of your car, and the reason why you drive most of the time. Your personal car insurance policy may not be comprehensive enough to cover for your varying needs.

If your car is used for very minimal business reasons, then private and occasional use is a good option. This allows you to use your car for personal use and intermittent business trips and on a minimal mileage. But the car must not be declared as part of a business neither as one of the means of making your income. So if you are self-employed and you make a living with making furniture for example, and you use your truck to deliver your goods, it is probably the best time to rethink your personal car insurance and get a more appropriate coverage. Under this term you can also have your spouse registered with the policy.

If your car is used for both private and business reasons on an equal regularity, private and business use is a good term to have. This will allow you to travel for any reason you can think of. A spouse or another driver can be included in the policy, making it more convenient and worry-free driving for everyone. This is best for people who has indefinite schedules or who works as an on-call 24/7 employee.

If you use your car solely for business purposes, you can declare it under commercial traveling. This applies to people who drives a delivery truck or a utility vehicle and has a separate private car for personal use.

Business car insurance comes with a very hefty price tag. But there are several ways to cut the cost and get a discount.

Minimize Mileage. Determine how much miles your car consumes. Giving your insurance company a proof that your business car’s mileage is no greater than your personal car may give you the discount you ask for. Since business cars make greater insurance claims, insurance companies can get too cautious about the risk involved. The greater the distance the car travels, the greater chance of it getting into an unfortunate situation.

Enhance Security. Be sure to tell them that you always have it parked in your own garage, or a secured parking area within the business premise. This minimizes the risk of it getting stolen. Also make sure that your car has sufficient security system to protect it from theft. And just like any other insurance policy, pay a higher deductible to get a lower premium.