[tweetmeme]Small businesses often have an entire laundry list of expenses, and commercial auto insurance can certainly be amongst the top. But getting affordable coverage for the company car is not unlike finding the same thing for a privately owned vehicle. Business owners can often find competitive prices quickly and efficiently by doing a quick online comparison. Because many main stream insurance providers also offer coverage for company cars, getting multiple quotes online from a series of companies can yield accurate and up to the minute results.
For a small business owner, knowing the insurance requirements for the state in which they are based is essential. Although there are some states that do not require automobile coverage, operating without an adequate amount of protection is extremely ill-advised. Getting in an accident with what may be a company’s only vehicle could be devastating to the business. Simply having the vehicle covered with a personal protection plan will not offer adequate protection either. Personal plans typically only pay for damages or injuries that result from an accident, but they do not cover any lawsuits that might arise against the business. Additionally, if an insurance company discovers that a vehicle is being used for purposes other than what was stipulated when the policy was created, there is a good chance that they will deny coverage or refuse to pay for damages. That being said, the right insurance is a must.
Typically each state has a minimum liability requirement and knowing these requirements is essential. An easy way to obtain this information is by utilizing official online insurance resources. As an example, California requires a minimum of $15,000 bodily injury liability (BIL) for a single person, $30,000 as BIL coverage for multiple people, and a property damage liability of at least $5,000. When purchasing coverage for a commercial vehicle, however, many insurance providers will require increased limits. However, often these limits are not enough. Although the extent of additional protection needed is based on what a company uses their vehicles for, business owners are still encouraged to get the maximum limits that they can afford, especially for bodily injury liability; a large work truck, for instance, is capable of doing a lot of damage. When searching for a quote, a business owner should figure in any additional coverage in order to get an accurate comparison.
If a small business owns several vehicles – generally two or more – then they may purchase a car fleet policy instead of having to deal with getting a policy for each individual automobile. Usually there are many advantages to covering an entire fleet. In this type of policy, the specific liability limits are applied to every vehicle, meaning that changing the limits on one car would change the limits on the remaining ones as well. Additionally, if an employee is properly registered with the insurance provider they may drive any of the vehicles in the fleet.
Obtaining the right auto insurance is important, and for a small business this is doubly so. Being protected in the event of an accident could end up saving a company a considerable amount of money and trouble. Doing the adequate amount of research and knowing how much coverage to get is a formula for success in the small business world.
About the Author:
Matthew Morisset is a writer for Online Auto Insurance LLC, a company devoted to producing top-notch information about auto insurance.