Average Business Car Insurance
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Business Car Insurance Costs - What You Should Know
If your car is used for very minimal business reasons, then private and occasional use insurance coverage 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 protection 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 carís 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.
Employee Car Insurance
If your employees will be driving your vehicle, it is often best to no have them use your personal vehicle but actually one registered and insured under the business name. One of the reasons for doing this is to keep the employees personally accountable for any issues that may arise while they are driving the company vehicle. This also helps insulate the company owners personal assets from being targeted by insurance companies, or individuals that may be injured by your employee while they are driving the company vehicle.
If you use your car for business you may find yourself in an unpleasant situation when you get into a minor collision, but a major bumper issue while traveling 70 miles away from home for a business trip could turn into a disaster. 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 partys damage claims.
A typical personal car insurance policy will talk about SDP or social, domestic and pleasure purposes. Any other reason, such as a small door ding, to a bumper scrape while you were driving may mean a situation that may be worth 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 you use it for business as well.. Finding a local agent to talk to is the best way to get an estimate of the average costs of coverage for your car when it is used for business.