Types of Cover Available for Business Cars

car-insurance

It is important for businesses in many different industries to have at least one automobile. This could be a key part of their service, such as for delivery, or it could simply be so that staff are able to easily travel to meetings, industry events etc. As a business owner, it is important that you make sure that these vehicles are properly covered in case something were to happen.

These are the main types of cover to consider.

Business Car Insurance

Business car insurance is essential if you will be using the car for business purposes – this could include running errands, making deliveries, travelling to meetings or travelling between business sites. Essentially, this is a type of cover that is required unless you only use the vehicle to travel to and from work each day. This type of cover is important because company cars travel further on average than domestic drivers and therefore a large percentage of crashes involve a company car. There are different classes of cover for this type of insurance so always make sure that you read about each one to determine which is best for you.

Commercial Insurance

For certain industries, commercial insurance will be required as you will not be covered by business insurance. This includes if your business is making deliveries or if you are a taxi driver.

GAP Insurance

GAP insurance is a smart purchase for any motorist as it could save you thousands of pounds. If the company car were to be written off either through an accident or if it is stolen and never recovered, the car insurance policy would only pay the current market value for the vehicle. Due to depreciation, this could be a significant amount less and make it tricky to replace the car. A GAP insurance policy will cover the shortfall between the original amount paid and the amount paid by the insurer. Write-offs occur far too frequently so it is better to be safe than sorry.

Extended Warranty

If the original manufacturer warranty has expired, it is also a good idea to take out an extended warranty. Automobiles can break down at any moment in their lifetime and they can be costly to repair – you do not want to use the company money to foot the bill so an extended warranty will provide protection and peace of mind.

Company cars are an important asset in many different industries. It is important that you have the right level of cover so that you and your staff can use the car each day with confidence and have protection in place if you were to encounter any issues with the vehicle. The above are the main types of insurance that you will need for a company car and all smart purchases to make.

About Mohit Tater

Mohit is the co-founder and editor of Entrepreneurship Life, a place where entrepreneurs, start-ups, and business owners can find wide ranging information, advice, resources, and tools for starting, running, and growing their businesses.

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