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It can be said that no matter what state you are in, the one thing your Personal Auto policy will not cover is any vehicle used for business purposes. This is primarily because business owners need to insure their business vehicles under a Commercial Auto Policy.
Quite a bit of information goes into forming a Commercial Auto policy. Customers need to provide the following for each vehicle that is used in the business:
- Year, Make, Model and VIN #
- Use-How will the vehicle be used in the business? Is it a private passenger car that will be used by Management for both business and personal use? Is it a repair truck that goes to multiple locations in one day? Is it a contracting vehicle that goes to one job and stays there all day? Do you have a delivery business with a high volume of deliveries particularly on the weekend?
- Garaging location- Whether all your vehicles are kept in the parking lot of your business or your employees take the company car home at night, the insurance company will need to know each of the cities and towns where they are located to be rated properly. Cities are usually rated higher because of the higher incidence of crime and theft than in a suburb or more rural location.
- Cost New-This would be amount that would be needed to replace the vehicle in a total loss.
- Type of coverage requested: Full Coverage or Liability Only- You can request liability, comprehensive and collision coverage or you can request liability only coverage. In the case of newer cars that you will want to repair or replace, you need comp and collision to pay for that repair. If you have an older vehicle that you won't want to replace, you can purchase liability coverage only.
- Loss Payee- If there is a loan on the vehicle, the lien holder needs to be listed on the policy so they are paid in the event of a total loss. You will need to provide the name and address of the lien holder as well as the vehicle they have an interest in.
All of these factors will determine the amount of premium to be paid.
Commercial Auto coverage is attached to the vehicle driver. For this reason, discounts are usually based on the number of vehicles, packaging more than one coverage on the same policy or the number of years in business itself. Increasing the comprehensive and collision deductibles or dropping this coverage on older vehicles can also be a savings.
Next time you need to insure a commercial vehicle, take these tips along so you will be fully prepared with all the information you need to get the best coverage.
What else can I help you with?
What is the quote for a car?
The quote for a car is an estimated price given by a dealership or insurance company for purchasing or insuring a vehicle.
What happens if your supervisor runs into your parked car on the job site?
You will get a raise. Seriously, was your supervisor driving his/her personal car or a company vehicle. You will need to file the claim with the company that was insuring your supervisor.
Where can I purchase collectible car insurance?
There is one company that has been insuring collectible cars for many years. It is Grundy and you can find them at grundy.com.
Can i be sued for insuring my kid's car?
No, you cannot be directly sued for insuring your child's car. However, if your child causes an accident while driving the insured car, you and your child could be sued for any damages or injuries caused. Insurance helps to mitigate financial liability in such situations.
Do you need U.S Drivers license to buy car insurance?
Yes, you will need a driver's license in order to purchase a car. An insurance company wouldn't accept the risk of insuring an unlicensed driver.
What is the average cost of insuring a motorcycle in Montreal Canada?
Insuring a motorcycle is an important as insuring a car. In Montreal, Canada the average cost of insuring your bike can be around 200 dollars depending on the type of bike, your age, and your driving record.
If an unisured driver has an accident in your car will your insurance still cover it?
Probably. When you purchase insurance, you are insuring the car. If you drive someone else's car and have an accident, their insurance should cover the costs (but their insurance *may* sue your insurance company for compensation/reimbursement.)
Where can someone find car insurance tips online?
Someone can find car insurance tips online at most insurance company websites. Some places include dgidirect, pcinsurance, belairdirect, and wellsfargo.
When car is paid in full is insurance required?
Yes. You are insuring not only your own car but anything that you hit.
Where can I find information on how to insure a car?
If you visit www.geic.com you will find a great deal of information on insuring your car.
What is the most cost-effective insurance option for insuring two cars?
One cost-effective insurance option for insuring two cars is to bundle them together under a multi-car insurance policy. This can often result in a discount compared to insuring each car separately. It is recommended to compare quotes from different insurance providers to find the best deal for insuring two cars.
Can the loan company for your vehicle charge you for insurance?
Yes. If you are making payments to a car lender, you are generally REQUIRED to insure the vehicle. If at any point they discover that you are NOT insuring the vehicle, they have every right to force coverage as they have a financial interest in that car.
