If you use your automobile for your small business, you may need a business auto insurance policy. But how do you know whether you need such a policy? And how can you save money on the policy if you do need one?
Who Needs Business Auto Insurance?
Business auto insurance provides the same type of coverages as a personal auto insurance policy – liability, collision and comprehensive, medical payments, uninsured motorists coverage, etc. However, you will pay about 10% more for the business policy, so you want to make sure you really need it.
In general, if you use your car for business purposes, you may need a business policy. This can include visiting work sites, transporting clients or co-workers, or even delivering pizzas. At the very least, you may need to add a business rider to your personal auto policy.
If your business owns a car, you definitely need to cover that car with a business auto policy.
Finding an Affordable Policy
The amount you pay for a business auto policy depends on the location of your business, the number of employees driving, whether you are insuring a company car or employees’ cars, and the driving records of your employees.
The best place to begin your search for an affordable policy is at an insurance comparison website. You can quickly and easily get quotes, compare policies, and talk with insurance professionals who can answer your questions (see link below).
As you research your options, keep these money-saving tips in mind:
* If you can afford it, raise your deductibles to bring your premium down. Most insurance companies will allow you to pay up to a $1,000 deductible for comprehensive and collision coverage. Just make sure you’ll be able to afford the deductibles if you ever need to pay it.
* If repairs will end up costing more than the cars are worth, skip the collision coverage.
* Ask your insurer to give you all the discounts you’re eligible for.