Numbers can jolt you to the reality happening around you in a second. Take for instance the Insurance Institute for Highway Safety (IIHS) reporting that there are 30,057 fatal crashes every year in the U.S. As a driver, you immediately start looking at the whole issue of insurance coverage.
Introduction to Business Car Insurance
Insurance coverage is critical, especially if you are driving your car to different offices or towns every day for the purpose of work. At a glance, you might think that this is all about the usual standard auto policy, but this is where most people are getting it wrong.
You need to appreciate the fact that if you are using your vehicle for work related stuff, then this becomes a business car which calls for a business car insurance policy. Your ordinary policy covers your car for social, domestic and commuting purposes, but not for business.
To use a practical situation, assume you are a marketing executive and you normally use your vehicle to visit different clients in the city and even the wider region. It might feel like your standard car insurance coverage is sufficient, but you will be shocked in case of an accident when the defendant’s attorneys use this fact to deny you compensation under the normal auto policy.
Demystifying Business Car Insurance
So, is business car insurance the same with commercial auto insurance? Well, they might sound similar but it ends there. Commercial auto insurance covers vans and other vehicles that make deliveries. This differs from your personal car which you use for other tasks such as client visits or market surveys.
To fully appreciate this coverage, you need to consider some of these factors:
1. Difference in Premiums
Unlike your ordinary auto insurance, coverage for this policy is higher. This is because you are deemed a higher risk because you are using the same vehicle for pleasure and business. Nevertheless, you can still find the best rates on insurance pages such as http://cheapautoinsurance.net. You can have a look at multiple carriers who can cover your car for business purposes.
This coverage sticks to the mantle of better safe than sorry. With modern society becoming more litigious, it is always good to be on the safe side in case you are involved in an accident when on a business run. If you don’t have the right cover, your assets might be attached in order to cater for damages such as medical and property damage.
3. Different Class Covers
This is the point at which most car owners get stumped because they need to clearly indicate what purpose their car is used for. If the car is still used for commuting, it requires mention during coverage that it is under social domestic and pleasure included in class 1 business coverage. If you have a named driver who uses the car for such business trips, you need a class 3 business cover to protect the policy holder and such a driver.
There you have it. Business car insurance saves you from financial agony in case of an accident, and there is no reason for you to avoid such a policy.