If you have heard of commercial or business car insurance, you may assume it refers to organizations that have one or more vehicles for business use. While these vehicles do fall under this category, you may be surprised to learn that your vehicle just might as well. Commercial car insurance is not just for business owners or corporations.
In many cases, an individual may need commercial car insurance in Salt Lake City or elsewhere in the country. They may be self-employed or they may work for a company. The key is not always in the job, but in the tasks being performed.
When You Work for an Employer
If you are traveling to meet clients or to attend a business seminar or training course, you may need a business car insurance policy. If you go to the bank on a routine basis or to the post office or run errands for your employer on an ongoing basis, you may need commercial coverage.
If you only do these tasks on an occasional basis, you may not need the additional coverage. However, if you operate your vehicle on a daily basis for the employer, you may be required to have coverage. Before you purchase a new policy, check with your employer. He or she may also have coverage that will pay for expenses if you are involved in a claim while doing a task at work. If this is the case, you may not need your own policy.
When You Work for Yourself
If you are self-employed, you will most likely need a business policy if you use your car for your job. This includes meeting clients, delivering goods or transporting people. Many times, these policies include both social and business use so that only one policy is needed, especially since you are using your personal vehicle for business-related driving.
If you have your own business, you will want to protect yourself from a claim by having adequate business coverage. Remember that your insurance company will pay up to the limit of your policy, but you can be sued for more if you are found at fault. The additional amount comes out of your pocket.
If you are not sure what kind of policy you need, talk to your car insurance agent. Ask him or her what policy will provide the best coverage for your situation. Make sure you let the agent know if you use your vehicle for work at all and how often. Some insurance companies may offer multiple products, such as both business and commercial insurance as two separate categories. Ask questions so that you understand what policy you need.
Compare quotes from multiple companies, but don’t let price be your only deciding factor. You have to think about how much coverage you need to protect your other personal assets and your business. Not having adequate coverage can be far more costly than paying for a little extra in your policy.
ASA Insurance provides excellent coverage for car and home insurance in the Salt Lake City area with the lowest rates to the English and Spanish communities . Affordable rates and superior service for all home, auto and business/commercial insurance needs.