If you use your car for commercial purposes, such as making deliveries for your small home business or visiting contacts, then you need to buy commercial car insurance for your car. Personal auto insurance policies may deny coverage if the car is used for commercial purposes, as they generally cover only the regular daily use of the vehicle (i.e. traveling to and from work and trips for leisure purposes). This exposes the small-business owner to serious financial losses if the car is involved in an accident.
Commercial car insurance, such as traditional auto insurance, covers the repair or replacement of a vehicle damaged in an accident and shoulders the cost of any claims for injury or property damage filed by third parties. There are three kinds of coverage available: private and sporadic business use, which covers the intermittent use of the car for commercial purposes as long as the car is not registered for business purposes and does not represent an important part of your business income; private and business use, which covers customary use of the vehicle for commercial purposes by the regular driver or any named driver; and commercial coverage, which provides coverage where the named driver uses their personal vehicle as part of their work. You have to apply for the particular type of cover that you need. If your staff also use their personal cars in their work, you should also take out “non-owned auto” policies; this provides coverage whenever a business uses a vehicle that is not in their name, including the business owner’s personal car.
The simplest way to get commercial car insurance quotes is from the insurer’s official site. Make sure to prepare all the required information, such as the license number of each named driver and their driving history, vehicle identification number and make and model of each car to be covered. Make sure to get quotes from at least three insurance providers to be able to evaluate rates and other features and ensure you get the best value for your money.
There are several ways you can save money on your commercial car insurance. If your regular insurer carries this type of insurance, you might be able to get a discount by taking out several types of insurance from him, i.e. by buying homeowner’s insurance and a commercial vehicle policy. Some insurers might also let you to add commercial coverage to your regular car insurance as a rider whenever you need it.
You can get discounts on your insurance through the usual methods, such as making sure that the vehicles have safety features such as automatic seat belts as well as anti-theft devices such as car alarms and locking devices for the steering wheel and always parking the car in well-guarded parking lots and other safe places. If you are still in the process of buying a car, then you should consider buying a make and model of vehicle that will not be charged high premiums by insurers. You can research this by asking for a commercial car insurance quote using the model of car you intend to purchase.