In some industries, it is necessary for workers to drive cars. Apart from the ones like delivery personnel and executive drivers, there are other employees who need to use cars during work hours, such as an on-call academic tutor who needs to fulfil requests for services. Another job that requires driving is being a sales representative for an automobile company.
This means that you must account for the possibility that they would need business car insurance. Travelling to different locations on company time puts your employees at risk, no matter how minimal. After all, nobody drives perfectly all the time, which is why business car insurance can cover work-related activities, such as driving to places of work or door-to-door sales.
Know the types of business insurance
Generally speaking, there are three different types of business car insurance. Class 1 insurance covers your personal use of your own car in addition to your driving to and from work. Travel between locations for work purposes is also covered. Know that Class 1 does not cover commercial deliveries or door-to-door sales, and it is also limited to the named driver or their spouse.
Meanwhile, Class 2 insurance is more comprehensive in that it includes additional drivers in the coverage. Same as in Class 1 insurance, though, it does not cover deliveries or location sales.
Finally, Class 3 insurance covers everything included in the previous types, in addition to driving for commercial purposes. Sales and deliveries are covered in Class 3 insurance, but not for use as cabs or for driving lessons, which typically fall under a different type of insurance.
In this article, we will share with you three tips to remember when seeking business automobile insurance:
- See what amendments you need
Auto policies may have coverage enhancements, such as no-fault or auto medical payments coverage. The no-fault coverage takes care of an insured driver’s medical expenses, and auto medical covers insured drivers and passengers who are not employed by the company.
Since companies have different rules and regulations, people would have varying degrees of coverage or enhancements. Sometimes, employees are the only ones covered by the insurance policy. In the unfortunate event that a non-employee is in the car during a collision, it is possible their hospital bills will not be shouldered by the company.
- Allocate resources for excess protection
Car excess insurance shields you from the mandatory excesses left out in insurance policies, and it reimburses you if your expenses go beyond what the insurance company will cover. For example, if your car gets involved in a collision, you are looking at upwards of £1,600 in repairs and possible medical bills.
Your business auto insurance company might give you £600 or whatever you can claim based on the circumstances of the collision and what they are legally bound to fulfil. This leaves you to shoulder more than £1,000 out of pocket. Car excess protection defrays the costs by taking on the amount that the insurance company will not.
- Shop for the best overall deal
Once you have determined what class of business car insurance you need, decide on the scope of your plan. Generally, business automobile protection covers three areas: comprehensive plans, specified causes, and collision coverage.
Comprehensive plans take care of damage caused by civil unrest, theft, and natural calamities, among others. Specified causes protections are cheaper than comprehensive plans, but offer protection from a set amount of hazards. Finally, collision coverage takes care of damage caused by the car running into another object on the road.
Business car insurance helps protect you on the road and while travelling. You spend most of your hours at work, so why take the chances of driving while being uninsured? Knowing the types of automobile insurance helps you to prepare for the worst. Furthermore, being aware of what your company provides will help you cover other aspects they wouldn’t.
If you are looking for an excess protection insurance provider in the UK, hire us today. We help consumers by giving them excess protection for cars, homes, shops, and more. Contact our Excess Experts today and let us work on making your claims more manageable and stress-free.