Small Business Brief

Safety & Loss Prevention

What Do You Need to Know About Company Car insurance?

Does your small business need company car insurance? If so, you probably have some questions. Click here to learn what you need to know.

As a business owner, protecting your assets from unforeseen risks, such as fire, theft, and accidents is essential.

If you have a fleet of business vehicles, you need to think about getting company car insurance. This will cover your car against liability and property damage. Keep in mind that drivers and workers who use their vehicle for work also need commercial auto insurance.

In this post, we’ll take you through what you need to know about auto insurance for your company cars. Read on to learn more.

What Does it Cover?

Auto insurance for your car covers a variety of situations, but the terms differ from one insurer to another. Car coverage options may be included in your auto policy. Other options are purchased separately, and you’ll need to choose the deductibles and coverage amounts.

A typical insurance cover for your business car may include:

  • Property damage liability
  • Medical expenses coverage for treatment and funeral costs
  • Personal injury liability to other people, such as road users
  • Personal injury cover for you, your drivers, and passengers
  • Towing and labor expenses
  • Employees who use their cars for work
  • Personal injury liability for injuries that occur outside of your state

Some plans may also cover you when you drive a rented or borrowed vehicle. You can even get coverage when using another car while users in repair. However, for these coverage options, you need to inquire from your agent about them.

How Does It Work?

Company car insurance works by protecting your business vehicles or any vehicle that you use for business purposes. It also covers your business drivers. You can get coverage for a single vehicle, such as your used Honda, or your entire fleet.

Most insurers allow you to get a custom cover whereby you can personalize your plan to suit your business needs and the use of your vehicles. If your car gets damaged due to an accident or inclement weather conditions, you can file a claim and receive compensation for all repairs.

However, keep in mind that your deductible will meet a percent of the total repair cost.

If your business car injures someone or damages property, the victim can file a claim with your insurer to cover the costs. In this case, your car insurance will only work up to the limit of your policy.

If you want to increase your limit, it’s advisable to opt for a commercial umbrella policy.

What’s the Cost?

The cost of your company car insurance depends on several factors, including:

  • the amount of coverage you need
  • the size and type of your business
  • the types and number of your company vehicles
  • your risks

You can’t expect to pay the same amount for coverage for a small passenger car and a heavy duty vehicle. But you can purchase fleet insurance and get a bulk discount to save money on your car insurance.

The drivers who will be driving your cars also impact your total cost. For example, if they have a bad driving record, it will cost more for you to insure your vehicles while a good driving record will attract better rates.

In terms of industry and use, heavy machinery vehicles, used in farming and construction will cost more. This is same for expensive business vehicles.

Company Car Insurance – The Takeaway

At this point, you know two or things about auto insurance for your company car. Take the time to compare different business insurance plans and companies before choosing a cover that suits your business.

If you have any thoughts on company car insurance, you’re free to share them in the comments.