Car Insurance Coverage for Small Business

For small business, or those who decide to give self-employment a go, deciding what type of car insurance coverage to get can be a confusing item. Commercial coverage can be prohibitively costly, but you have to make sure that you will be covered in the event of an accident. There are some general guidelines to help make the right decision, though, and the information given here should help you make the best decision for your particular insurance needs.

How Many Vehicles?

The number of vehicles in your company could help you make the decision between using personal insurance coverage and commercial coverage. If you have one or two vehicles that are used for both personal and business use, you may be able to justify having personal insurance. If you have one or more vehicles which are only used for business purposes, or if your vehicle has a permanent logo or company ID painted or lettered on, then commercial coverage should be the route you take, to avoid claim disputes.

How Many Passengers?

If only you or your immediate employees will be riding in the vehicles, it may be possible to get by with personal insurance and have each driver listed on the insurance coverage. On the other hand, if you must drive customers around, or have a number of frequent passengers who are not under your employ or in your family, then commercial coverage is probably the best alternative.

How Much Cargo?

Will your company be picking up materials or delivering finished products? If your company makes cabinets, how will they be delivered to the customer? If your desktop publishing company makes flyers and tri-fold booklets, how do you get your supplies and deliver the finished products? The more material or product you will be moving from one location to another in your company vehicles, the more likely it is that having commercial coverage is answer for you.

Why Commercial Car Insurance Coverage Is Better.

Commercial car insurance coverage provides for higher loss and damage levels, and can be applied to all employees who are legally entitled to drive a vehicle. If you must drive passengers around, they will be covered for higher limits and you can also avoid having outrageous deductibles, as well. The most basic piece of advice is that if you are in doubt as to whether you need to have commercial auto insurance coverage, you probably should have it.