There is a big difference between a commercial auto insurance and a personal auto policy. Do not think that you can use one in lieu of the other. You need a commercial auto insurance if you are driving your car for business pursuits. If you own a business regardless of size, you should buy liability auto coverage. This is a legal requirement that you must comply with, particularly if you have to use a vehicle or several vehicles to carry on your business operations.
Various Types of Commercial Auto Insurance
Several types of commercial auto insurance packages are being marketed by different insurers. You may want to look into the various options to determine the plan that would meet the car insurance needs of your business. For example, your business has a number of vehicles to deliver goods, haul for use of your sales representatives. You can either get a fleet insurance coverage or buy the per vehicle commercial auto insurance. It is more cost-effective to buy fleet insurance if you have several vehicles for business use. Needless to say, your only choice is the per vehicle policy if you only have one vehicle you use for your business.
The Exclusions Provisions of Auto Insurance
Commercial auto insurance also have exclusion policies, just like in personal car insurance that you must be familiar with. Make it a point to read and understand the exclusion provisions included in your commercial auto insurance policy. If need be, consult with a lawyer or insurance professional so he can explain the details to you. This is important so you’d know your company’s position when it comes to dealing with liability claims in case your business vehicle figures in an accident.
Provisions on Special Coverage
You must realize that your business is amply protected just because you have already secured a basic package of commercial auto insurance. There are certain situations or arrangements of vehicular use that must be specifically covered in your policy to obtain full insurance protection. For instance, if your account executives use their own cars in making sales calls, what you need is a non-owned commercial auto insurance policy. This also applies if you rent the vehicles used in your business operations. Further, it is a must that you know the rightful owner of the vehicle you lease, such as cargo trucks, so he can be duly covered by your commercial auto insurance. This means that you must have on file the complete name of the vehicle owner, as registered, to avoid complications on technicalities when it is time to file a claim against your insurer.
How You Can Avoid Paying High Premiums
Commercial auto insurance is more expensive than personal car insurance. It becomes more costly if you have several vehicles that you must insure. Nonetheless, your expense on premiums will spare you of financial consequences if anything untoward happens to any of your vehicles. However, you can take steps to bring down the premium rates of your commercial auto insurance. One way is by hiring only professional drivers with excellent driving history. Your insurance company will give credit to your drivers’ impeccable records when computing the amount of the premiums you must pay on your commercial auto insurance. Another way is by installing safety devices on each vehicle used in your business. You should also get anti-theft gadgets as well as a GPS locator. These items would make your vehicles safe and secure, and could result into reductions in your premium payments.