3 Questions To Answer Before Buying Commercial Auto Insurance
Purchasing a commercial auto policy is an essential part of a business’ insurance program. Basically, if your business operations use vehicles, you need a commercial car insurance to protect your assets and investments. However, although it’s a requirement, it doesn’t mean you have to purchase the first one that comes along.
Here are some three major things to consider before purchasing commercial vehicle insurance.
What Kind of Vehicles Do You Have?
Auto insurance companies divide commercial vehicles into two categories—the private passenger type and the Trucks, tractors or trailers. Private passenger types consist of sedans, station wagons, mini vans and smaller vehicles. On the other hand, trucks can differ in sizes and are divided based on their weight (Gross Vehicle Weight).
The more commercial vehicles you have, the lower your insurance rates are going to be. Your company can have vehicles that consists of passenger types, trucks or a combination of these two. So, before buying a commercial auto insurance, list down all of the vehicles that you use for business. Specify the make, model, year and weight for trucks.
Do You Use Vehicles You Don’t Own?
It’s important to consider the vehicles that your use for your business but do not own. These vehicles can become a liability if they get involved in road accidents and put your business in financial risk. Commercial Auto Insurance divide these vehicles into two categories—hired cars and Non-owned cars.
Hired cars are those vehicles that are being leased, rented or borrowed by your company for operations. Non-owned autos are those that your company uses for business operations but do not own. A good example of this is when you ask your employee to use his van to deliver your products.
Whether your company owns, rents or hires vehicles, you need to get commercial auto insurance to protect your business. You can choose coverage for hired or non-owned vehicles or both.
Where and How Do You Use Them?
There are two questions that you have to answer when it comes to commercial auto insurance. First, “How do you use your vehicle?” and second, “Where is your garage?”
These questions are important because your answers can directly affect your insurance rates. Commercial auto insurance rates are related to how long your vehicles are driven and the distance that it travels. In this sense, the truck that you use for your daily delivery requires a higher rate compared to other trucks that are parked at the company site.
These questions will not only help you find the right commercial auto insurance, it will give you more knowledge as to what policy you need based on the vehicles that you use for business. Part of getting the best commercial auto insurance is to find a top-notch insurance company that can cater to your needs.
We at Sameday Insurance, provide expert assistance to our clients in choosing the best deal within their budget. We are always ready to help and give our services. Feel free to contact us at (888) 750-9775. Get your free quote today by CLICKING HERE.