What should business owners know when choosing commercial car insurance?


Quick Answer

Business owners should be aware that they face a higher rate of liability than personal drivers purchasing car insurance due to risks involved with employees and their passengers, work gear and equipment, notes DMV.org. When purchasing commercial insurance, business owners must consider the type of vehicle they need to insure and if cargo will be loaded and unloaded. If business owners want certain add-ons, such as lawsuit coverage, they must purchase them separately from most primary insurance policies.

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Full Answer

Business owners also should know ways to save money when purchasing commercial car insurance, explains DMV.org. Some of these methods include reviewing the driving records of all the employees to be insured. Employers can obtain the driving record of a potential employee if part of his duties involves driving. Insurance companies often offer a discount for companies that employ individuals with commercial driver's licenses. Other ways to save money when choosing a policy include shopping around, selecting a policy with a higher deductible and bundling multiple policies with one company.

For those who are self-employed or small-business owners, speaking to their current personal car insurance company helps them to understand if they need commercial insurance or not, explains Esurance. If a business owner needs to insure a few vehicles, he may be able to get a quote online, notes AutoInsurance.org. However, those who need to insure many vehicles often need to email an agent for a quote.

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