If you own or operate a business that involves automobiles, you must have commercial car insurance. These insurance policies are suitable for all kinds of vehicles that are used commercially.

What is Business Car Insurance?
Business car insurance, also known as commercial auto insurance covers damages caused to vehicles used for business purposes. If your company owns vehicles, be they a car, truck, van or a trailer that is titled in the company’s name, then you’ll need business car insurance to cover them completely.

Nowadays, we see a lot of cars are being used as commercial vehicles. Take a taxi for example. These vehicles are used to conduct day to day activities of a business. Daily operations of taxis and other business vehicles enhance the severity of hazards such as accidents and damage from natural or man-made disasters. These dangers might result in catastrophic vehicle damage, resulting in high repair expenses.

Paying for such repairs can disrupt your business’s financial planning, reduce your profit margin, and possibly result in a loss. Thus, business owners need to get comprehensive business car insurance to protect them financially from such losses.

What Kinds of Coverage Can a Business Car Insurance Provide?
Business Insurance usually includes bodily injury and property damage claims in the event of an accident during the business. However, the coverage depends upon the insurance you have taken. Therefore, it is very important to research your insurance carefully. Your insurance would broadly include:

● Collision: Collision insurance covers damage to a vehicle caused by a traffic accident or a collision with a stationary object such as a house or a subway. Say, your business driver meets with an accident during the business and hits a traffic pole nearby. If your arent insured, you would have to pay for the damage to the vehicle by your pocket.

● Comprehensive: Damage to the car caused by situations beyond the driver’s control is covered by comprehensive coverage. Damages caused to your vehicle in the event of theft would be covered under the insurance.

● Liability: Liability insurance covers damages in cases of injury to a third party by your commercial vehicle. Say, your driver, in the course of conducting business activity hits a passenger on the road. In case the passenger sues your company for the injury, the insurance will cover the claims. However, if a driver is guilty of reckless driving or driving while drunk, your liability policy may not cover you in some states.

Business car insurance is different from personal car insurance. They both differ in the limit of the coverage. Business car insurance only covers commercial vehicles and the other covers claims for personal use such as accidents during personal travel.

Is Business Car Insurance Required for My Vehicle?
You’ll need business insurance if you use your automobile for work, even if it is for something as simple as delivery or commuting. You would also need business car insurance if:

● The vehicle is given to you on lease by a corporation or a company
● Your vehicle’s weight exceeds a certain amount (differs from state to state)
● Use of vehicles to cover large areas
● Using the vehicle on highways for business purposes such as delivery
● If you have to drive your coworkers or management to meetings, the office, or multiple job sites as part of your employment,

It is important to mention here just because your vehicle doesn’t satisfy any of the mentioned situations above, doesn’t mean you cannot get your vehicle insured. The bottom line is, if your vehicle belongs to a business, you can get it insured.

Cost of Business Car Insurance
Business Vehicles are at a higher risk of incurring damages due to accidents as they are almost always on road. Therefore, they are more costly an ordinary vehicle insurance. It isn’t possible to calculate an exact amount that would give you an idea of how much can this insurance cost you. The prices vary as every business has its unique needs.

Insurance companies will use different parameters to determine the cost such as:
● What you are using your vehicle for
● Driver’s history
● The place where you are driving the vehicle- highway or a remote area
● Previous claims on your business

Getting in touch with commercial insurance brokers is the best method to figure out how much business insurance will cost your firm. The brokers at Beneficial Insurance Solutions are well equipped to help you find the best commercial car insurance that suits your business at the most reasonable price. Click here to request a free commercial auto insurance quote.