Guidelines for Choosing the Right Auto Insurance Coverage for Your Home Based Business Vehicle
If you own a home-based business and you use your car for your business, you probably already have a basic auto insurance policy. But is it enough? The truth is most business owners have enough coverage under their personal auto insurance policy to protect their business investments.
However, any business owner knows that running is business has significant differences from their personal life. Making sure that the business is protected, and that you are taking advantages of any legitimate savings is critical. Here is some advice to help you get the most out of your business vehicle.
What Auto Insurance Coverage is Available for Homeowners?
While you may be able to cover you business vehicle under your personal policy, there are some exceptions. If your business requires you to make deliveries or deliver a service, you need a commercial auto insurance policy. This type of policy will protect your business assets if you are ever involved in a car accident. But if your business only requires the occasional use of your vehicle, like a real estate agent who may need to drive clients to see properties every now and then, a personal auto insurance policy should be enough.
A home-based business owner’s main concern when it comes to auto insurance should be coverage. As a home-base business owner, you should be aware of the liability limits in order to protect your personal and business assets. Your liability limits and deductibles are what determine the cost of your auto insurance policy. For example, if your insurance limits are set high but your deductible is low, then your insurance rate will be higher. When you purchase an auto insurance premium, auto insurance companies look at the number of miles you drive, who drives your car, your driving record and a history of any claims made.
Choose Enough Coverage to Protect Your Business Investments
Home-based business owners should consider increasing their liability coverage as added protection against an unexpected accident. An injured person could end up suing you as both an individual and a business, wiping you out financially. Higher liability insurance coverage can offer you significant protection from any potential problems down the road.
Another option when it comes to obtaining auto insurance coverage is to select a business owner’s policy. This policy covers damage and your liability risks on and off of your business property. A business owner’s insurance policy can cover up to $10,000 to replace your business equipment if it is lost, stolen or damaged.
Saving Money on Auto Insurance
Everyone looks for ways to save money, especially when it comes to purchasing auto insurance. But don’t assume that buying low coverage will end up saving you money with auto insurance. Try some common ways of reducing your premium to:
A home-based business owner has a lot to lose without the right amount of coverage. Business owners should always consider liability limits when purchasing an auto insurance policy.
Whether you choose a commercial or personal auto insurance policy, the protection provided is basically the same. The claims are processed the same, and the legal representation you are provided if a judgment is made against you is the same. A commercial policy is a bit more expensive than a personal policy, but it can offer more protection for your personal and business assets.
If you want to learn more about auto insurance for home-based business owners or receive a free insurance quote, enter your zip code into the quote box at the top of the page. You can also visit our home page for more information about Auto Insurance Specialists Auto Insurance Company/AIS.
Deerbrook Auto Insurance Company
Auto Insurance Specialist
November 5, 2012November 5, 2012 0 Comments