What is Business Car Insurance and How Does it Work?
When you own a business, you are aware of all the expenses you must cover, including the different types of small to large business insurance. If you have some employees that work for you, there will be even more company insurance obligations that you will have to cover (worker’s compensation), and you may even offer company-sponsored health insurance for some or all of your full-time workers.
Unfortunately, there is one specific area of business that many owners and managers forget to even consider, let alone secure coverage for; business car insurance. Let’s dig into this topic a little bit deeper and figure out what business car insurance is and how it can work for you.
What is Business Car Insurance?
As you might expect, business car insurance is similar to your coverage for your personal cars but in a much broader scope. After all, the vehicles registered to your business can be driven by a number of people in your company’s employment. That means, in the simplest terms possible, that under a typical insurance plan, you would have to have dozens, if not more, of people listed as drivers on your policy. That means your premium costs will go up and up and up some more.
So, a business car insurance plan makes things simpler for you. It will cost you more than your average personal plan. Still, it will cover any driver in an accident that is driving, or a passenger, in one of your company vehicles. Of course, it goes without saying, but they are only covered while on shift and if they are legally driving in the first place. If you’re interested in finding a suitable business car insurance plan, you can check out iSelect at https://www.iselect.com.au/car-insurance/
How Does Business Car Insurance Work?
Just like your personal car insurance, there are several levels of coverage that you can pay for. Obviously, the higher the level of coverage that you opt for, the more you will have to pay for premiums. On the other side of that coin, though, the more coverage you will have if an accident should ever occur, no matter who is behind the wheel or who is at fault.
Let’s review the four main types of car insurance as a quick refresher.
- Compulsory Third Party (CTP) – This is the minimum amount required by law. In most areas, this will be added to your registration, but if not it will have to be added to your policy.
- Third-Party Property – Covers damage to property, including vehicles, of any third party involved in the accident if it is the fault of you or your driver.
- Third Party Property, Fire, and Theft – Covers damage to property of any third party involved in an accident if you or your driver is at fault. It will also cover your vehicle if damaged due to fire or theft.
- Comprehensive – The best policy you can get covers damage to the property of all those involved in an accident, including third parties and business vehicles, no matter who is at fault. It also protects against damage from theft, fire, acts of nature, and damage due to civil unrest.
Business car insurance is something that you should have if anyone drives a vehicle for company use, including yourself. Now, that does not mean that you need to pay for a separate business insurance policy if you drive a car to and from work. However, if you have to go across town to make a deposit or use your vehicle to pick up supplies once a week, it is an investment worth its weight in gold if you ever need to file a claim.