Car Insurance Deals

If your business uses automobiles, you will have to have company car insurance and it can’t be the policy that covers your personal automobiles. You have to purchase a separate, company car insurance policy for the vehicles you use for work, even if it’s just one car, truck or van. The point is to have the correct policy for your company’s vehicles in case one of your employees causes an accident.

Company Car Insurance

If the vehicle is being used for your business, you can only insure it with company car insurance. The vehicle might be a car that doesn’t have a logo on it but if it is being used in the process of performing work-related duties, you have to purchase company car insurance for it. It can also be the type of vehicle that people remember when they think of company cars such as the delivery van. These types of vehicles definitely need to be covered by a company car insurance policy.

Liability Coverage

You will need to insure your company’s vehicles for the same reasons that you need to insure your personal automobiles. Most states have set minimum requirements of liability coverage that people must purchase to drive their own vehicles, and these limits also apply to company cars.

If your employees ever cause an accident, you will need to have liability coverage to pay for bodily injuries suffered by third parties. Most likely, a car collision is going to cause property damage, and the property damage liability coverage you must buy will be designated to pay property repair bills of the third parties who were hit.

Each state has set amounts of coverage that you must purchase, but these limits can be higher for some industries than for others. For example, your state may require that you buy more liability coverage if you have a taxi company. If you employ people who are driving your trucks across state lines, this may be cause to need to purchase more liability coverage than the average company that drives within state lines.

Optional Coverage

Your vehicles might be transporting specialized equipment that your employees use to perform their duties. Because these aren’t part of the vehicle, they will not be covered by the company car insurance policy unless you specifically add coverage for these items. During a collision, the ladders and other tools that you might have in the vehicle can become damaged and you will need to replace everything. Companies that sell company car insurance know how to price tools and equipment, and they sell policies that cover these items when they have been stolen, damaged or destroyed.

Choosing Employees

Before hiring the employees who are going to be driving your vehicles, you must make sure that they are insurable under a car insurance policy. In order to be able to drive your automobiles, these employees are going to have to be listed on your policy. This means that the car insurance company will need to be able to reject or accept each person, and there are a few people who are, for the most part, regularly rejected. Employees who are under 25, over 74, aren’t properly licensed to drive the type of vehicle you own or have bad driving records are those who often receive rejection notices from company car insurance companies.

Driving Records

Your employees’ driving records are highly important when it comes to car insurance. The rates that you will be charged will be based, in part, on who will be driving the vehicles. If you have 10 employees and all 10 of them have had several accidents and many traffic tickets, your rates will be extremely high or these people will not be allowed on the policy. The best time to find out about potential employees’ driving abilities is to obtain their driving records during the application process. This will keep you from hiring people with horrible driving records.

So to sum up. If the car is being driven for business, you need company car insurance. This will be what protects you from accidents caused by your employees and losing your vehicles because you can’t afford to repair them. Without your vehicles, you won’t be able to conduct your business and your revenue will suffer.