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Business Car Insurance

Business car insurance is an essential part of any business insurance package. Many small business owners wonder whether they really need business car insurance. Some of them think because their companies are smaller, that they do not need this form of auto coverage. But in reality, the need for business auto insurance has less to do with size than it does specific usage of your vehicles. When you are trying to determine whether you need to upgrade to this form of protection, take into consideration the specific uses you have for your commercial cars. And do not fret if you find you have a need for business car insurance. You can find great prices for excellent policies with top providers when you shop online.

Small Business Commercial Car Coverage

Most large corporations opt for commercial car coverage for their vehicles without much thought. They understand their need for this type of protection, and do not even think about the possibility of opting for a personal auto policy. In fact, this type of policy would be next to impossible to set up in many cases anyway, given the way a car owned by a large corporation is normally titled. It is simply common sense to go ahead and cover a large corporation's fleet of vehicles with a commercial car policy.

But things are not so clear for small businesses, usually owned by an individual and sometimes only including that individual as an employee. Many small businesses are not so much started with a specific launch date as they are evolved out of progressive entrepreneurial opportunities or plain necessity. Oftentimes small businesses emerge when long time employees of existing companies have to go out on their own or choose to branch off for financial reasons or due to lack of work with their current employer.

Maybe you have launched a business and are completely on your own working for yourself. Or maybe you're still associating with your former employer, only now you're working as a contractor instead of an employee while you build up your own business. Either way, if you use your car for work purposes, it is likely you will need business auto insurance. Making sure your insurance situation is appropriate for the way you use your car is essential. You can be denied a claim if you have an accident or some other situation related to your work and only carry a personal car insurance policy.

Personal versus Business Car Coverage

Understanding when it is appropriate to carry personal coverage and when is the right time to switch over to a commercial policy involves analyzing your use of the vehicle. Some people put a lot of emphasis on the way a car is titled. They correctly point out that if a vehicle is owned by a business, it likely will need a commercial auto policy. However, the same can be quite true of a van or truck titled in your own name. The title owner is not nearly as important as the use of the vehicle.

Business automobile insurance is a special type of policy that specifically protects a vehicle in work use situations. For example, if your truck is damaged on a construction job site, your business automobile insurance would be the appropriate policy under which to file a claim. You might have some trouble if you filed under a personal plan. In fact, it is quite likely your claim would be declined, and your coverage may even be voided if your insurer finds out how you are using your car for work purposes. If you are going to go ahead and spend the money on insurance, you may as well do so knowing you really are covered for all you are spending.

If you use your personal vehicle in most any work related situation, it is very likely you need a business car insurance policy to properly protect it. For example, if you use your personal vehicle to drive to work sites and you carry materials and equipment in it, your work usage necessitates a proper insurance policy allowing this kind of work use. Most people do not realize that delivery workers using their own car should really have a business car insurance plan.

Proper Protection is Critical

If you work for someone else, and do not have designs of any kind on owning your own company or going out on your own in the field, you might think this sort of protection is unnecessary for you and your vehicle. But if you use your personal ride for work related things, you need to be covered. At the very least, make sure the company you work for has non owners coverage on its commercial policy so that your vehicle is protected if anything should happen to it while you are using it for work. This is very important because you never know whether your own personal policy provider will choose to decline a claim following a work related accident.

For example, if you are a flower shop employee and you make deliveries to the homes of customers using your own car, your personal insurance plan might choose to deny coverage if you get into an accident while making a delivery. Being covered either by your own business car insurance plan or a business vehicle insurance plan of your employer's with a non owners option helps you avoid this kind of situation. The cost of a commercial auto policy is not really that much more than a personal car insurance plan, and there are many benefits to a commercial policy that make it advantageous to those insured.

One of the biggest benefits of a business car insurance plan over a personal policy is the availability of much higher liability limits. The things you do while using your car for work can lead to very dangerous potential liability situations. From transporting dangerous materials to heavy items that can easily cause accidents in the right set of circumstances, there are a number of ways using your vehicle for work presents unique dangers that call for business vehicle insurance protection.

Liability limits aside, business car insurance gives you a chance to insure multiple drivers outside your own household and authorize them to drive your car. If you own a business with any employees other than yourself, in all likelihood you will need to get them covered to drive your cars, whether they are titled in your name or your company's. The insurance decisions you make will affect the health of your business over time. Be sure you are aware of these long term effects as you ponder your auto coverage choices. Don't make decisions based only on the cost of your insurance plan.

Whether you have just started a company or you have been working as a contractor for some time, you need to address the proper way to insure any vehicles you might use for work. It is not wise to turn a blind eye to the need to take care of this matter, because a personal auto policy may amount to no coverage at all in the event of a work related business car insurance claim.


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