If you are using vehicles for your business purposes, then you should have commercial car insurance in order to protect your assets. Vehicles used for commercial purposes have different rates and type of coverage than private vehicle.
One of the big difference is you will find terms for commercial use of a vehicle in commercial car insurance, and you will not find these terms in regular policy. If you are having a regular car policy, incase some damage happen which is proven to be happened during commercial use of the vehicle than the insurer will not pay for your claim. So having these terms is essential, you should work together with the provider to give the coverage needed for the vehicle insured by giving full explanation about the vehicle and the use of the vehicle.
Fleet insurance is something to be considered if the business having several vehicles and drivers to be insured. It will gather all the vehicles in one policy and usually less expensive than insuring by individual.
Business with a large fleet sometimes builds another company in purpose of leasing the vehicles to the main company. In this case, it is important to clarify this structure to the insurance provider to guarantee the policy covers all vehicles, individuals and companies, so there will not be any confusion about who is insured under the policy.
Just like other insurance there are some ways to lower the premium of commercial car insurance.
- Business location can determine whether you will get a high or low premium, if it is located in a low risk area you can get a low rate too.
- Make sure you hire drivers with clean records as this will also affect the premium.
- Vehicle type is essential, if you only use mid-sized hatchback/saloon you can get a low premium.Raise the deductible value, this will also lower the premium.
- Equip the vehicles with safety and anti-theft devices, insurance companies love this and they will lower the premium for you.
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[...] Auto insurance is one of the most popular kinds of insurance, and almost every vehicle owner has it. Even in some countries, driving a vehicle without insurance is against the law. Every year, insurance companies have to pay millions of dollars for auto insurance claims, as the risk level of the insurance object which is vehicles are quite high. So, like any other kinds of insurance they also set the premium based on the risk level of the costumer. [...]