If you’re in charge of your business’s company cars, then you most likely have quite a few questions—especially if you’ve never used a company car before. One of the main things that can confuse company car owners is car insurance. Exactly how much do you need, legally? How does insuring a company car differ from insuring your personal vehicle? Keep the following tips in mind when it comes to insuring your company car:
- Your first step is to determine what your company vehicle will be used for, as that can have a large impact on the type of car insurance that you need—and how much of it you need. Is the car a delivery vehicle? Will it be used to transport passengers? Will a salesperson be using it to travel to various clients’ locations?
- If the vehicle you’re insurance will be used for delivery purposes, then you need to take a few factors regarding the freight into consideration—particularly, the type and value. Transporting hazardous materials? You might need to have special riders added to your insurance policy. Is your company vehicle going to be delivering highly sensitive and expensive goods, requiring your car to be an armored one? Then your policy will have to be tweaked in order to compensate for covering such a valuable, high-dollar loss, should one occur. Be sure to discuss the type of freight you’ll be delivering with your insurance agent.
- If your company car will be used to transport passengers or customers, then you’ll want to get more liability coverage.
- Turn to your insurance agent for all of those specific, hard-to-answer questions. Completely inform your agent of what your business does and the role that the company car or cars will play. Be as specific as possible in order to get the best advice. Then it’s up to you what to do!
These are just four tips that can help to make your car insurance buying experience a little easier. What other tips and advice would you like to share with fellow company car owners?