When considering buying insurance for a company car, two areas must be considered. If you are a company owner or manager needing to insure a vehicle that has been added to the fleet, you will generally shop for the insurance in much the same way that you would for a personal car. On the other hand, if you are an employee who is uncomfortable driving a company car and desire to add your own coverage to the vehicle, a slightly different approach may need to be taken.Here are some tips on how to get insurance for a company car:
Before shopping for insurance, determine how the company car will be used.
Is this a delivery vehicle, a salesperson’s car or an upscale model that will be used by an executive? Will it be used to carry passengers? Depending on the use of the vehicle, the type of insurance needed may change. Each type of use has its own set of insurance needs.
When insuring a delivery vehicle, you must consider the type and value of the freight.
The type of freight that is being carried in the vehicle needs to be communicated to the insurance company. Trucks and vans that are expected to carry hazardous materials may need to have special riders added to the policy. In fact, the insurer may need to be contacted in some instances to make sure that certain types of freight will be covered before loading the vehicle. If you are insuring an armored car that will carry lots of cash or extremely valuable freight, other types of insurance will be necessary to make sure that enough dollar value is in the policy to cover a loss. This is even more true if the vehicle will be carrying freight that belongs to other people or businesses. A special bond may be needed on both the vehicle and the specific drivers.
Cars or vehicles that will transport passengers or customers require higher liability limits.
Because people can be hurt in car wrecks or even getting into or out of a vehicle, medical liability can be a huge part of a commercial or company vehicle policy. You will need to outline in an explicit manner what type of passengers will be carried and why. Drivers may need to be screened before being allowed to drive a vehicle for this purpose.
Begin shopping for insurance for the newest addition to the company fleet by contacting your current agent or broker.
While you do not have to insure every vehicle that you own with the same company, it is usually the best choice to do so. When a new vehicle or a first vehicle is purchased by a company, it is a great time to explore what types of insurance options and prices may be available to you. This can be an ideal time to make an insurance switch if it has been considered for a while. Many times, the property casualty coverage and the vehicle coverage can be carried by the same insurance provider. This may result in some significant discounts and higher liability options.
Once you have informed the agent about your needs, the bulk of the responsibility for providing a bid that fits your needs falls on that person’s shoulders.
Just like purchasing insurance for a personal car, a commercial policy is built by the agent and presented to you. After that, it is important to have several bids so that you can sort through what types of options are available and which ones pertain to your needs. You may discover some areas that require insuring that you had not considered.
If you are electing to add insurance onto a company car that you do not own, a new set of rules emerge.
Essentially, you will be buying a non-owned auto policy. This policy may or may not include collision coverage for the car itself. You can obtain higher liability limits to cover your personal assets. These policies can raise the medical benefit payouts for yourself, passengers and other people outside your car that may be involved in a loss. Most of the time, this is not really necessary. However, if you choose to head down this path, consult your employer so that you make sure that your employer’s policy provisions do not exclude purchasing this type of coverage. The company insurance will need to be informed to prevent double payouts in the event of a claim.