Auto Insurance for Business
Auto Insurance For Business
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Commercial auto insurance for the home based business
When you own your own business and operate it from your home, it can be
easy for the lines between businesses and personal to cross and to confuse
how you handle certain aspects of your operation. And with all the
different IRS guidelines and home business ordinances, it is definitely
easy to become confused about what is business-related within your humble
abode and what is personal.
Personal Auto Insurance: The Basics
Personal auto insurance is not so much a product chosen based on the
ownership of the vehicle in question as it is a product chosen based on
the use of the vehicle being covered. When you talk about personal auto
insurance, you are talking about a policy that covers the expenses and
liabilities that arise from an accident that occurs when a vehicle is
being operated for personal purposes. This could mean that it was going to
or from the grocery store, dance recitals, the library and all manner of
personal errands.
Personal coverage includes all the basic options you are used to, like
collision, bodily injury liability, personal property liability,
comprehensive and more. When you have personal auto insurance, you may be
asked to provide information about where you work, what you do for a
living, and how often you drive each week, but your home business has no
bearing on your rates other than it may reduce some of your risk since you
drive less and, therefore, create a lower premium for you.
Where Commercial Auto Insurance Fits
We now know that personal auto insurance refers not to the ownership of
the vehicle, but to the usage of the vehicle. As a home based business
owner, you may be more likely to use your vehicle for business purposes
than an employee at a regular 9 to 5. Why? Well, unless you order all your
office supplies online and have them delivered, you almost definitely use
your vehicle for business purposes. In addition, if you need to pick up a
client or client property, pick up stock, shop for items to resell, travel
to meetings or drive to a coffee shop to work for the day, your travel may
be considered business-related in the insurance company's eyes.
No matter how small the errand is or how little time it takes you to run
each week, if you use your vehicle for any business purpose, and an
accident occurs while you are out, your insurance company may deny the
claim if you have nothing more than personal auto insurance. From their
point of view, you have asked them to insure your vehicle based on a
certain kind of usage-personal. Adding in business usage changes the
insurance contract because it takes away their ability to accurately
assess your risk based on your actual exposure.
Commercial auto insurance offers many of the same coverage options as
personal insurance, but it is appropriate for the commercial or business
use of your vehicle. There are even some ways to design a policy so that
it can cover multiple drivers and multiple purposes, so you can get
personal and commercial coverage that is adequate for your actual usage,
all in one policy.
Like personal insurance, commercial auto insurance offers you the
opportunity to choose deductibles and limits that create premiums you can
afford. Be sure to watch your deductibles-these must be paid out for every
accident and can become financially burdensome if they are too high.
Additionally, low limits may create inexpensive premiums but they also
expose you to much more financial risk than you may be reasonable able to
take on.
If you are a home based business owner, it's a good idea to take an
objective look at your driving habits. When you do, you might be surprised
at first how often you utilize your personal vehicle for business errands.
But being surprised before you have an accident is a good thing, because
it gives you the time you need to get the right insurance coverage to
protect your business, your family, and your financial future.
Ted Taylor, vice president of General Insurance Services, has over 30
years experience as an insurance agent. Call him at 219-879-4581 or go
online to get a free Valparaiso business insurance quote.
Article Source: http://EzineArticles.com/?expert=Ted_Taylor
Article Source: http://EzineArticles.com/6424866
