BUSINESS CAR INSURANCE – WHY IS IT SO EXPENSIVE?
Many businesses give cars to their employees. And the truth is, there is a great liability and responsibility when driving a car you don’t possess. This is why companies who perform this practice need proper insurance for their fleet. In reality, car insurance for businesses protects both the employees and the company from eventual risks and mishaps.
Standard auto insurance policies are meant for domestic and personal use. This includes everyday driving, going shopping, having a day out, sightseeing or visiting friends. If there is a commute to and from regular work, a policy can automatically cover the car. However, if the car is driven the same route every day or parked in the same place, then it would be uninsured.
Nonetheless, many employees need to drive their car to several locations – as there are cars constantly on the run. The delivery service is a perfect example for that – and indicator that business cars also need proper insurance and coverage for their specific needs.
But why is business car more expensive – when it is just driving as well?
First of all, the formula by which auto insurance companies project business car insurance is due to the increased driving in heavy traffic and on unfamiliar roads in which cases the chance of a claim is increased. Also, the level of care for a car that is not your own brings us to a conclusion that employees do not actually treat the corporate cars in the same way as their personal ones.
Fortunately, there are various classes and types of business car insurance. The details vary between insurers, however it is a must for every company to choose a policy carefully and apply it to the whole fleet.
In the end, business car insurance is far from the commercial car insurance. There are various classes taken into consideration when insuring your car, and their differences play a great role in the process. T