Business Car Insurance: 6 Things to Find Out Before Signing
When you operate a business, the vehicles you use to conduct your operations are valuable assets that you should protect. A vehicle is almost your second home since it can take you to different places and also enhance your business. Therefore, you must get the right insurance policy for your business vehicle to protect it against unexpected incidents that may occur while driving it. However, there are different things you should know before buying insurance for your car. Here are 6 things that you should find out before signing for business car insurance.
Type of Policy/Coverage
Before you buy insurance for your car, you must consider the type of policy and coverage you need. If you operate a business, you need to get commercial auto insurance. The primary purpose of auto insurance is to give you protection in the event of an accident or any liability that may arise while using your vehicle. There are three main types of coverage that you can get from different car insurance providers that include the following:
- Liability – provides coverage to other parties when you are wrong during an accident
- Comprehensive – this policy is optional, but it provides coverage for non-collision damages to your car like hitting animals
- Collision- offers coverage for damages to your vehicle after an accident in which you are partially at fault.
The advantage of car insurance is that you get compensation if your car has damage from another driver as a result of an accident, that is their fault. You can also offer the same settlement to another party if you cause the accident. No matter who is at fault, most policies cover the repairs of all vehicles that have damage in an accident.
Cost of Insurance
You must shop around to get vehicle insurance that offers competitive and broad coverage to suit your unique situation. In Massachusetts, you can get quotes from different insurance providers to get companies that offer discounts. You can use tools like this to calculate premiums for various car insurance plans. More importantly, you need to be careful to get something that you can afford. This is to avoid financial challenges if you fail to pay your premiums.
It is important to remember that different factors can affect the cost of vehicle insurance. Such as age, credit score, and driving record. Young drivers are viewed as high risk and likely to pay higher premiums. Therefore, you must determine your needs and choose the best option that suits your needs.
Type of Car
You also need to consider the type, make, and model of the car before you get insurance. Insurers know how much each model is likely to incur in terms of claims which affects the cost of the policy that you will get. Flashy and expensive cars are at high risk of being stolen and this can affect the price of your policy. However, you may receive discounts if your car consists of the latest security features. This also means that you may make fewer claims.
Who Are Other Drivers?
Your car insurance should cover other drivers who will also use it. Your insurance company may reject a claim if the vehicle is driven by someone who is not listed on the policy. However, you must know that you will also pay higher premiums if you include multiple people on your policy. Even so, it is a good idea to add anyone who may drive your car. Especially as you can not know what may happen.
Is the Car Leased or Financed?
Insurance for leased or financed cars differ, and you should know this before you get one. You should insure the vehicle for its full value if you still owe money. Therefore, collision and comprehensive policies can cover damages to your car. Supplemental gap insurance also covers the difference between what you owe and the market value of the automobile.
Review the Policy
When you have completed your research and decided on an insurance company, you must carefully read the contents of the policy. You should verify if the plan contains the coverage that you want. You also need to check if the insurer will pay for original manufacturer parts before you sign the policy. Each policy comes with terms and conditions, and many people often neglect to read them only to fight with the insurers later when they make claims.
Like any other type of insurance, auto insurance is designed to offer you protection in the event of damage or any other liability that may arise when operating your business car. However, there are various types of vehicle plans that provide different forms of coverage. As such, there are many things that you should find out before signing your insurance.