Risk Management: 6 Important Reasons to Purchase Company Car Insurance
For business owners, having a car is the best thing when it comes to time-saving and convenience. But then again, a car is usually exposed to many dangers when it is on the road and however much you try, you may still get involved in collisions and other accidents. Some of these may be beyond your control because they might be caused by bad weather or some natural catastrophes.
In short, you can’t be 100% sure that you wouldn’t get involved in an accident while you are on the road. Company car insurance protects you against such eventualities and gives you peace of mind.
What is Car Insurance?
Car insurance is a binding agreement between you and an insurance company such that should your car get involved in an accident or stolen that company will bear the burden. The insurance usually covers the car itself, your legal liability towards those injured or whose property gets damaged, and medical costs.
Most cases usually end up in court to determine liability before you can get your compensation. This means you will need the services of accident benefits lawyers to argue your case in court.
The car insurance covers are very flexible because they are priced separately, meaning you can customize your coverage amounts to suit your exact budget and needs. Insurance has many benefits that no individual or company can ignore. Does your business own a car?
Do you use your personal car for business activities? Here’s why you need to buy company car insurance.
1. Business Auto Insurance Is a Requirement of the Law
No matter where you come from, the law requires that you purchase car insurance. The traffic authorities have the mandate to check and ensure that your car insured, if not insured, they will confiscate your driving license and tow your car to the nearest police station.
If this happens, both you and your business will get inconvenienced because you will have to pay for the release of your car from the police station. So, as a law abiding citizen, it is good to have your car properly insured before you take it to the road.
2. Your Personal Auto Insurance May Not Cover Your Business
The personal car insurance is not enough to provide you with enough coverage in case you are using a personal car for your business activities. The insurance will not cover auto accidents you may get involved in during business activities because the business auto policy may not cover a personal car used for business purposes.
To get good coverage, you need to purchase a business and commercial auto insurance for any vehicle you use for business operations.
3. Company Car Insurance Can Save You Money
After an auto accident, the right car insurance will allow you to continue with your business without any financial stress. This is because you will spend less to get back your car on the road compared to the much you would spend without the insurance.
Without an up-to-date car insurance cover, getting involved in an auto accident will be the most intimidating nightmare especially if some people got injured or their property damaged.
Bumping into a motorist, pedestrian or cyclist may leave them with injuries that require expensive medical attention and if you’re the one at fault, you will have to compensate them and cater for their medical expenses. This can be very expensive and may be beyond your means.
However, with a good insurance cover, both you and those who got injured or those whose property got damaged will get compensation.
4. Car Insurance Goes Beyond Collision Cover
Even if you are the best driver in the world, you may not be able to prevent auto accidents and they don’t usually come cheap. Some accidents are beyond human control. Your car can be stolen or it may get vandalized. These are things that you don’t have any control over, and without insurance, you would be forced to spend a lot of cash to buy a new car or to repair your damaged car.
A good insurance cover protects your car against all these eventualities.
4. Lenders Require Insurance
If you need money to improve your business, one of the options would be to borrow and use your car as collateral. If your car is not insured, the lenders will never accept it. You need funds for your business to evolve and compete better, so it is wise to have your car(s) fully insured in case you want to use them as collateral.
5. Business Car Insurance Grants Peace of Mind
When your car is insured, you will have peace of mind whether you are driving or the car is packed somewhere. You need that peace of mind to be able to attend to your business needs effectively and be more productive.
The peace of mind come about because you will be sure that whatever happens to the car, you will not have to spend your cash to sort it out.
6. Business Vehicle Insurance Ensures Business Stability
This is most important for small businesses. If your company is just picking up, it may not be able to survive after your car gets involved in an accident. Bigger companies can absorb such expenses but still, they will feel the pinch.
This is not the case with a small company because the much spent to buy a new car or to repair the damaged car will bring the company down.
Company Car Insurance Has Additional Benefits
Many insurance companies offer coverage even for the unlikely incidences. For example, when you pack your car then a storm occurs causing some debris to fall on it leaving some dents, some insurance companies may come in and help in repairing such dents and make your car look as good as new.
Without an insurance cover, you would have to repair your car on your own after such an incidence. The seven benefits of insurance discussed above are the main reasons to rush and purchase a company car insurance. However, before you sign any contract with an insurance company, ensure they are reputable.
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