If you run a business of any size, chances are you require the use of a motor vehicle for at least part of the time. And if your business involves shipping, hauling or driving your clients, or if you spend hours of every day going to and from job sites or client offices you probably consider your car one of your most important resources. That means you must have your vehicle insured for business, with the proper coverage, at the best rate possible. There are a ton of options out there, and determining which one is right for your needs is no small task. Here are five tips to help you insure your business vehicles.
First of all, you’ve got to shop around. Insurance is all about demand, and your business is worth a great deal to the right agency. Make sure you hop online and ask for several quick quotes. You’ll want to target at least six companies you would like to work with, and see what they are willing to offer. Pick some national brands, which generally offer the lowest rates. But don’t forget about the local and regional companies either. They usually provide more features and better customer service. Get your quotes, and then speak with an agent about the specifics available at the various price points.
Regardless of the quotes you receive, if at all possible you should pay for the entire year’s coverage up front. Every company will offer you installment payment options, and that can be tempting when you’re dealing with the regular expense of running a company. But those installments will raise the overall price tag of the policy. They tack on a fee for taking advantage of the extended payment. So save yourself a bit of money by handling the whole thing up front.
There are a lot of considerations when it comes to business insurance that go far beyond the dollar expense. Since this is business insurance, you’ve got to be aware of the liability limits you will receive. Depending on how the vehicle is going to be used you might have to pay for additional coverage beyond the state’s minimum requirements. This is often the case if you are going to be shipping freight or driving customers around. Ask your insurance agent if you aren’t sure how much insurance you will need. If they are the right choice for you they will have experience with business requirements and should steer you in the right direction.
One twist you might deal with is if you don’t own the vehicles you use for business. This is something that could come up if you are an employer who needs to provide business insurance for the employees under you using their own vehicles. Those cars aren’t solely used for your business, as your employees will certainly use them in their personal lives as well. But if you require them to bring their cars into your company, you must offer coverage while they are being used for business. Make sure this is something you can cover within the same policy, and discuss rates for partial vehicle usage.
Finally, don’t forget about the fine print in your policy contract. Every insurance provider has different regulations. The details you’ll find within policies purchased on that CheapAutoInsurance website will differ from what is offered by Geico, which will also differ from the local insurance company in your town. Ask the agent to talk through all of the rules that aren’t obvious from the quote. There may be trial periods before new vehicles are fully covered, driver limits or issues if your cross state lines. You might be able to negotiate the specifics of any of these, but you have to know the rules first.