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If you have a vehicle and are using it for commercial purposes, that is, to run your business, then obtaining a business auto insurance policy¬†becomes essential. Providing detailed information about your vehicle would enable your insurance official to recommend an appropriate coverage befitting your needs.
You might be aware of the fact that a personal auto insurance policy does not include coverage if you use your vehicle for business activities. Whereas, a business auto insurance policy would give you adequate protection as well as defining what is actually meant by business use of your vehicle or vehicles. In case you have any doubt in this regard, it is advisable to obtain a business auto insurance policy so that in case your vehicle is involved in a mishap or an accident, your insurance policy will come to your rescue.
The following factors would largely guide the business auto insurance policy premium values:
- Business Location – The geographic location where you use your vehicle to conduct your business would determine some part of the premium.
- Type of Drivers – If the driver of the vehicle has good track record, the premium will not go up.
- Type of Vehicle – Homely, small or medium-sized sedans that have a safety score of five stars, would attract very less premium.
- Vehicle Deductible – Your premium amount will also be less in case you do not mind taking some risk with your vehicle and are prepared to pay huge deductibles.
- Safety and Anti – Theft Devices – If your vehicle is equipped with regular safety devices like, you can be confident that your premium will certainly be manageable.
A Few Facts About Special Commercial Insurance
You must understand that as a business person, you have to abide by certain federal and state regulatory norms when you are using your vehicle for business purposes. For instance, if you use your vehicle for interstate cargo transports, you shall have to follow certain stipulations of Department of Transportation with regard to your commercial insurance. Study all the rules carefully to avoid any irregularity from your end. Also, in case you deliver or lift goods for others or make use of additional assistance like a leased trailer or any other device on rent, you will have to make sure that you have an insurance coverage for such hired equipment too.
In Whose Name Should The Insurance Be?
While you buy a business auto policy, you should have a clear idea in whose name you would want your insurance. Most businesses prefer to have a company that gives equipment on rent to the main company. In that case, the leasing would become the official owner of the leased vehicles. Most businesses make the mistake of obtaining an insurance policy in the name of the main company instead of the leasing company. Also, the common practice is to use the dba (doing business as) of the company in the policy instead of the actual name of the company. Make sure that you include the actual name of the company as the policy holder and mention the dba, other affiliates and employees in the insured list of the business insurance policy.