When it comes to insurance, do you really know what you’re paying for? Most people don’t really know or understand the difference between various coverages, let alone the types of offerings companies have. Insurance really is a tricky business, and most people are paying for something they don’t really understand.
When it comes to insurance for your company, it might feel like a whole other world.
Don’t be left in the dark or stuck paying for things you don’t need, or even worse, missing out on coverages you should have. Choosing the fitting insurance policy for your company is difficult. This guide will introduce all the different types of car insurance policies for businesses.
Car Insurance Policies: The Basics
Car insurance policies are that invisible peace of mind you purchase to make sure that if something were to happen, you and your car would be okay. These policies are typically made up of two main basic coverages: liability and collision/comprehensive.
Your liability coverage is what covers you in the event that you are responsible for an act while driving that causes an accident. The collision and comprehensive coverage is what kicks in to cover your car for damages whether during an accident or if say a tree falls on it or it catches fire.
There are also various additional coverages that can go along with car insurance like rental car coverage, and some forms of health coverages related to motor vehicle accidents.
Car insurance is mandatory in places. For example, in the United States, almost all states require by law that vehicle operators must hold a minimum amount of coverage. Check to see what is the minimum required to carry as a business to get you started on your search for the perfect coverage for you. This will help point you in the right direction on your search for additional coverages you might be missing out on.
Personal vs Business: What’s the Difference
There’s a few differences when it comes to personal versus business car insurance.
Person insurance covers your own personal vehicle and specifically has one or two people listed as policyholders in the documents. The types of vehicles that will be insurance are personal vehicles like two or four door vehicles like pick-up trucks, sedans, and vans. These will be your typical day to day vehicles.
Business insurance or sometimes called Commercial insurance will typically be in the name of the business and have blanket coverage extending to employees. The vehicles that would be covered under these types of policies would be cargo vans, transport trucks, construction vehicles, and fleet vehicles like limos and trucks to name a few.
Take a look at the vehicles your business operates, what the usage of your vehicle(s) is/are, and who is driving them to make the proper selection for you. This will make shopping for coverages a lot easier if you know what you’re looking for. Don’t worry if you don’t know specific terminology, the insurance advisor you speak to will be able to point you in the right direction.
Finding The Right Insurance
You’ll want to make sure that the policy that you’re selecting is correct for your vehicle and usage so that you have not only the proper policy but the proper coverage especially in the event of an accident. Each type of insurance covers different things. Read up on or ask your insurance advisor about fleet policies, car hauler insurance, and/or heavy machine insurance to make sure you’re getting the right coverage.
Most importantly is selecting the right insurance provider for you. Not all providers will offer business insurance for vehicles as they might only specifically cater to personal line vehicles. A quick Google search should point you in the right direction on who to contact.
If in doubt, you can contact an insurance broker who works with a variety of insurance providers to help you select carriers that are right for you and your business.
Don’t be afraid to ask for any discounts that the company may provide, some companies will offer some incentives that can save you a bit of cash. Also, do not be afraid to shop around for a better deal so that you can get the best price possible and the best coverage available for you and your business.
Check The Fine Print
Always, always read the fine print of your insurance policies and never hesitate in asking. The fine print is where insurance providers will list your exceptions in coverage and list out any limits or deductible you’ll need to pay in the event that you need to file a claim.
Each company will also have their own rules and regulations regarding who can and cannot be listed on your business car insurance so be sure of what they are before signing up for coverage. Some companies will have an age, years of experience, and license class exemption in their rules.
Companies will also have limits to the amount that they will pay out during a claim, as well as instances where they will not cover you. Be fully aware of the risks present in your business and how they affect your policy. This will save you a headache (and of course money) in the long run.
Car Insurance Policies Pro
You’re well on your way to a better understanding of the difference between personal and business car insurance policies as well as making the right selection.
Remember, don’t be afraid to ask lots of questions and check on that fine print of what the insurance company you are looking at is offering. Make sure to understand what type of coverage you are being offered and looking at so that you can compare prices effectively. And definitely shop around for the best price and coverage for you and your business.
Be sure to check out the rest of our site for more helpful content. Visit the Finance section of the Everything Entrepreneur Blog to learn more about car insurance policies, risk management, liability reduction, and financial management.
