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Drive Forward with the Right Car Insurance for Your Business

Dave Thomas

October 12, 2012

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The man or woman running a small business needs different types of insurance coverage in order to protect their investment and hard work.

One of the forms of coverage that can sometimes go overlooked, however, is finding the right car insurance for company vehicles. While you would think it would be a no-brainier, some business owners unwittingly think that their personal auto insurance will cover them and/or any employees that use the vehicles during the work day.

According to the Census Bureau, there are more than 240 million registered motor vehicles nationwide, with an estimated 25 percent of those being used for work-related purposes.

If you are a small businessman or woman in need of cheap car insurance, there are a variety of options that you can drive off with.

In order to start your engine and drive forward, keep some of these factors in mind:

1. In the event your business name is on the vehicle title, you will find the need for commercial auto insurance. Keep in mind that commercial auto coverage generally proves much more expensive than personal auto due to the fact several employees can be behind the wheel at any time;

2. Your commercial auto coverage costs will be influenced by several factors, including the driving record of anyone who will operate a company vehicle, the number of insurance claims saddled against your business in the past, how old the drivers are, and what type of safety features are on your company vehicles like anti-lock brakes and airbags;

3. If one or more of your employees drive their own cars while working for you, look into general liability coverage. The reason for this is you want to protect your business and employees should one of them be injured, or in the event they are in a collision.

Ask the Right Questions When Shopping for Car Insurance

Now that you hopefully know the importance behind commercial auto insurance for your business, what are some typical questions that should be asked of and answered by an insurance agent?

They would include:

* Which kinds of vehicles need coverage? - Many companies make available hired or non-owned car coverage options. With having those in place, you can cover any vehicle under the usage of an employee, regardless of ownership. The coverage can also go towards rental cars;

* How many quotes should I get - It is best to get several quotes (anywhere from 4 to 6 is a good start) when shopping for a commercial policy. Compare and contrast the prices, customer service, history of the insurer, and their financial stability. You should also first consider your personal insurer, checking to see if they have discounts available for multiple policies. In many cases, insurers will give you a discount if you have more than one policy with them;

* Are savings available to me? Having safety features installed on company vehicles and having employees complete driver safety courses are among two ways to reduce your commercial auto insurance costs. In the event you are hiring employees that will be expected to drive for your business, be sure to check out their driving background for any tickets, accidents, etc., as these factors can cut into your savings;

* Do I need to review my commercial auto insurance policy? - Yes, by all means you should review your policy at least once a year. Check over time to see if your rates are steadily increasing, staying about the same, or actually going down. You also want to review the insurance marketplace regularly to see if there are better deals out there for you and your small business.

In a day and age when many small business owners are just getting by, driving off with affordable car insurance coverage just makes sense.

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