What Insurance Do You Need For A Company Car?
Choosing car insurance is something you need to do very carefully. That’s because your policy dictates everything that is covered and not covered, along with your policy limits which determine how much money you are entitled to receive in the event of a loss.
For car owners, choosing the right policy could prove to be a challenge as they don’t always realize what their coverage entails and how much they could be missing out on having paid to them when an accident occurs. When those vehicle owners are using a car, truck, van or any other type of motor vehicle for work, their current insurance policy may not be enough to keep them properly and fully insured should something happen.
That’s because maintaining insurance for a company car can come with different requirements than if that car were being used solely for personal use. If you are driving a company car and concerned about having the right auto insurance ashland, take a look at the following information so you can make a more informed choice as to the type of coverage you need on your vehicle.
Understanding How a Business Vehicle Insurance Policy Works
If you’re a small business owner, you probably have some kind of business owner policy or various other types of coverage to protect you and your company. But if that business relies on the use of any type of vehicle during business hours, then you will need to purchase business vehicle insurance.
That’s because maintaining a personal car insurance policy on a vehicle that is being used for work purposes during business hours will not protect you in the event something happens to the vehicle over that period of time.
A business vehicle policy acts in much the same way as a personal auto insurance policy. Many state laws will have certain minimums and requirements that must be maintained on any auto insurance policy and, whether a business or personal auto policy, those standards must be met or exceeded. These typically include carrying some type of liability insurance for bodily harm and/or property damage or loss that could come about due to an accident in which you or an employee are at fault.
Due to a growing number of drivers hitting the road without car insurance, some states are requiring that business vehicle owners have some level of uninsured/underinsured motorist coverage as part of a business vehicle policy. There is also the option for adding physical damage coverage on vehicles that are owned and/or operated by your business and the members of the organization who work there.
Maintaining a Business Vehicle Insurance Policy
So now the question is, do you actually need one or more of these policies for your business automobile? The answer is, perhaps. It all depends on the types of vehicles you rely upon during the routine operation of your business, as well as knowing who will be driving these vehicles, for how long, and for what specific purpose.
Knowing the answers to these questions will be the determining factors necessary for helping you decide on the levels of coverage required.