Whether you are a home-based business or a storefront business with a handful of employees, you still need auto insurance on cars you use for company business. When you seek cheap auto insurance, you will be asked if the car is for personal or commercial use. Major insurance companies offer policies for both. Business car insurance provides further protection of company assets in case of an accident.
What to Expect
You will need to supply different information to get a company vehicle insured. The application and approval process can take a bit more time because you may have to provide certain documents to the insurance company. Consider all of your options to make sure you have sufficient coverage. You can still get low rates but those should be secondary to excellent coverage so risk to your company is minimized.
Type of Business
Part of the application process is a detailing of business and daily driving activities. Insurance companies are interested in the amount of business-related mileage the car is likely to accumulate. If you are a home-based business, you will need to carefully document how your personal car is used for business purposes. There are several primary types of auto insurance for small businesses that are based on usage of the vehicle.
Business Credit History
Businesses have credit ratings just like individuals. A poor corporate credit score can cause your insurance rates to increase. You need to be as responsible with your business finances as you are with your personal ones. Pay your vendors on time, do not default on business loans, and maintain manageable lines of credit. Check your business credit through major credit bureaus like Experian.
Two main types of discounts you can get associated with business car insurance is the safe driving discount and reductions for security features. If your company is located in a high-crime neighborhood, you should have a secure place to park your car. An alarm on your car can help you get lower rates. Each year your company vehicle is accident-free, you have yet another opportunity to get cheap auto insurance.