How to select the ideal Business Car Insurance policy

The general vehicle liability cover protects a personal vehicle from loss due to damage resulting from an accident or an incident. However, what happens if you get in an accident while driving a company vehicle? How about losing valuable business items from a lockable compartment to theft?

Whether you are a business owner or manager, you should consider purchasing additional coverage for your vehicle. If you are an employee and use a company vehicle to move around on work assignments, you need to ensure business car insurance coverage.

The business car insurance policy helps safeguard company assets should an incident or accident occur. It would help if you acquired liability insurance designed to cover damages caused by not insured drivers under your auto insurance policy. With many options available for your company vehicle insurance policies, arriving at the perfect cover can be confusing, thus a couple of factors you need to consider for the ideal insurance coverage.

1. The Type of Vehicle

It is pretty evident that the make of the cars will have a significant impact on your premiums. For example, if your company uses luxurious cars like Mercedes Benz or BMW, it will cost you more than ordinary cars. You are likely to spend more on premiums for precious cars than cheap ones. The logic behind this is that it is more expensive to replace or repair a valuable vehicle than a cheap one.

If the vehicle has a recurrent mechanical issue, you will spend more repairing an issue like this compared to a new one. When thinking of business car insurance coverage, bear in mind that the vehicle's type, value, and condition will count in calculating premiums. Most insurers offer discounts for cars with anti-theft devices and other in-built security features.

Ordinary personal cars are cheaper to insure than ambulances, SUVs, full-size vans, and trucks. The computation of premiums for trucks is relatively complicated as it differs due to the weight classifications. Heavy-duty vehicles attract higher premiums compared to light-duty cars such as pick-ups.

2. Nature of Business

The kind of work that you do will determine the type of cover for your company vehicles. White-collar jobs may not have hefty insurance requirements compared to blue-collar jobs. Vehicles involved in plumbing, electricals, and construction will need more coverage. The reason is the cars carry tools of the trade such as scaffoldings, equipment, pipes, wiring cables, and more.

When selecting the type of insurance, be keen to consider the kind of job you will do in it. If you use the car to ferry materials, tools, or equipment, choose a cover that will protect your business items from loss.

3. Frequency of Use

The number of trips you make for business travels will determine the kind of insurance you pick and its price. If you own a travel company with RV cars, you should consider purchasing motorhome insurance covers. If your business runs its operations regularly, including the weekends, you may opt for a higher risk cover. Otherwise, if you only drive occasionally, your coverage should cost less due to lesser exposure to risk.

4. Location

The location is another factor that you need to think about critically. You are likely to pay more if your company operations occur within the urban centres. The metropolitan areas have a higher risk of theft, vandalism, and accidents than rural ones.

Some neighbourhoods are generally safe, while others may have cases of vandalism, making the premiums more expensive. Although the rural areas attract less premium, miles covered in business errands can lead to high rates.

5. The Size of Your Fleet

The number in your fleet of cars will help negotiate favourable terms for your insurance. If you have many vehicles, you are likely to pay less when selecting You as your insurer. Bundling up the policies with us will help you save much compared to only choosing a few vehicles.

6. Your Drivers

Age, gender, and status impact the price of premiums. Generally, young male drivers attract higher prices compared to women counterparts. It is because ladies are more cautious on the road compared to men. Also, young generations have higher chances of causing accidents compared to the older population.

The license status, driving history, and accident convictions influence calculations of premiums paid. A bad driving history includes

• Fleeing from a scene of an accident
• over speeding
• Intoxication while driving
• Recklessness
• Suspension or revocation of license

Bad records lead to expensive insurance coverage, while clean records of your drivers will help you enjoy low premiums.


Business car insurance helps your firm continue with usual operations in an incident or accident. Moreover, you will not need to worry about the financial implications should something terrible happen on the roads.

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