If you are driving a company vehicle, you will no doubt be listed under the company’s insurance policy. This is to protect your employer in the event of an accident whilst you are operating the vehicle. There are, however, some special circumstances where one might not know whether or not to insure their motor vehicle with business or personal car insurance.
If you have personal car insurance, and have an accident whilst you are using your vehicle for business related purposes, then you might find that the insurance company does not pay out. How would they be able to determine the vehicle was being used for business purposes? Well if you were delivering or couriering something to a client, transporting goods or if you have an employee driving your vehicle.
If you think that at any time your vehicle could be used for business purposes, it is best to ensure you have the correct cover. Business auto insurance is vital for companies that use fleet vehicles. Such companies include delivery services, moving companies, sales companies and businesses which deliver goods to their clients or use their fleet to transport clients. It is imperative that you get all drivers of company vehicles listed on the policy, no matter what the cost of the premium. Some insurance companies will house all the business’ insurance needs under one roof. A lot of companies will need medical, equipment and property damage coverage. If you are insuring your company’s fleet with a specific insurance house, you can find out whether or not you will be able to obtain a package deal. It is important that the company is fully aware of the driving skills of the employees they list on their policies. All drivers must be licensed, and just as a bad driving record can affect an individual’s policy, it can also affect a company’s policy too.
There are some other options for a business insurance policy. As we mentioned above, some people may only use their vehicle for business occasionally. Some insurance companies will allow a partial policy, where the vehicle is insured for personal use with occasional business use.
Pay as you drive insurance is very popular with businesses, as it is an excellent way to keep track of the movement of the vehicles whilst they are being used by employees. The premium could also be lower, as it is calculated on how far the vehicle travels every month. Installing a good security system on every company vehicle will also lower the theft risk, which in turn lowers the premium.