Commercial auto insurance, facts and figures you need

If you own a business that uses or owns cars and vehicles as part of the business vehicle you will need business or commercial auto insurance just as you need personal auto insurance for your vehicles. A vehicle is classed as for business use if it is the main means of transport during work hours. If you are registered as the owner of the vehicle and you use for business use it is important you are covered for business use. Failing to do so might cause your insurance company not to pay a claim. If your business is the owner of the vehicle make sure the auto insurance is in the name of the business to avoid future misunderstandings.

Why do I need a special business auto insurance?

Car insurance companies deem cars that are used primarily for business use a higher risk. This is because they are more likely to be used during rush hour or on unfamiliar routes. If the vehicles are used within a factory or industrial park the risk of fire, theft or vandalism might increase also.

What are the differences between commercial auto insurance and regular personal insurance?

The differences can get quite technical and differ greatly depending on the business, country you live in and insurance company you use. It is therefore a good idea to seek unbiased advice on what coverage your business requires. One of the greatest differences between business and personal car insurance is the level of personal injury and third party coverage required. The chances of getting sued by another party increase drastically when one owns a business with even the smallest of vehicle fleets.

Which business class cover should I choose?

Again the different classes business vehicle insurance are classified into varies greatly from one country, company and business sector to another, making it next to impossible to generalize. However we can suggest three main business classes of insurance which will help you make a choice.

Business class 1 offers basic business vehicle insurance for transport for and during work hours. Beware that all drivers that use the vehicle for business are included in the cover as sometimes only the main driver is covered by the business insurance. This class will not cover delivery of goods or door to door selling. This is a very basic insurance cover that will only be suitable for the smallest of business use.

Business class 2 tends to provide insurance for the policy holder and a named driver for exclusive business use. This cover will not include commercial use as described above, i.e. delivery and selling. Again we must emphasize that business cover classification varies widely.

Business class 3 provides a wider cover that includes transportation of light goods, for example catering and flower deliveries, and basic selling purposes.

As you will have noticed choosing an appropriate business auto insurance is not a simple matter. It requires some thought and planning which can make the difference between success and failure in your business enterprise.