Commercial car insurance gives coverage to cars that are owned by your company. It provides coverage for unforeseen situations like an accident, collision, theft, burglary attempts and fire. Other unforeseen situations can also take place, but they have to be specified in your commercial car policy document. Commercial car is also grouped under commercial auto or vehicles by insurance providers. If you are looking for commercial car insurance on a website and are unable to find it, you can locate it under the heading of commercial auto insurance or commercial vehicles insurance.
Factors that Determine Commercial Car Insurance
The premium price of cars insured for business purposes is dependent on several factors :
- The age of the driver : The age of the drivers for company cars is a factor for setting up commercial car insurance. Commercial insurers will set a higher premium price if any of the drivers of your company are aged 18-25.
- The age of the vehicle : The age of your vehicle is a crucial factor for premium determination. If your cars are more than 10 years old, they are eligible for classic car insurance.
- The make and type : Commercial cars with small bodies and compact engines can allow commercial car owners to get a lower premium. Heavy duty and high performance cars normally have much higher premiums.
- Your office address : If your business is located in the countryside or outskirts of the city, you will probably get a generous discount on a commercial car insurance policy. Working in such locations makes your cars less susceptible to burglaries and accidents.
- The average mileage covered : If your company cars have high mileage, the commercial insurer will not offer you cheap car insurance. Your car should have a low mileage to negotiate budget car insurance. But since company cars have a high usability level, acquiring a low premium price will be difficult.
- The credit history : Your personal credit history and your business’ credit history are factors that determine commercial car insurance. Both of them need to be unblemished to get a good premium price.
- Number of cars : The number of cars your company has is a factor for deciding commercial car premiums. Insurers often have multiple car policy discounts that your company can avail.
Questions To Ask Commercial Car Insurers
When you are looking for potential commercial car insurers, you need to ask them the right questions to pick the right insurer for your company. Pertinent Questions :
- How long has the insurer been providing commercial car insurance ?
- Who handles the claims at the commercial car insurance company ?
- Have the claims representatives been specifically trained for claims handling ?
- Is there a round-the-clock telephone service for claims ?
- What insurance packages are offered by the insurer ?
- Does the company offer flexible payment options ?
- Can the customer handle the car insurance policies online ?
- Does the company offer any discounts ?