For many business owners, there are so many things to consider that car insurance is a bit of an afterthought, with the same old brokers asked to take care of annual renewals. As a result, they can spend hundreds and thousands of pounds too much on insuring their employee’s cars year after year after year. What’s more, the policy they choose can often be unsuitable.
Choosing the correct insurance for your vehicles is crucial for your business. Consider the implications of a car being stolen or one of your drivers getting involved in an accident. You need policy that will enable you to quickly overcome the issue and get on with your work as normal.
As expensive as insurance feels when you aren’t using it, businesses often fall into the trap of thinking the pricier policies automatically make for better cover. That’s not true in the slightest. Always base your policy decision on the terms of the coverage. Be sure to read, and understand, the small print.
Business car insurance
Business car insurance is typically more costly than standard car insurance because it’s likely that a vehicle that is used for work purposes will be used more often and at busier peak hours during the day, therefore increasing the risk that you may make a claim. With this in mind, avoid being dishonest about your intended usage because if your insurer discovers the truth, your policy may be deemed invalid and you will not be entitled to make a claim in light of an accident.
We repeat that the coverage an insurer is providing should be the key to your decision, but there are ways of reducing your premiums once you have settled on the best cover for your business.
If you are investing in new vehicles, bear in mind the insurance bands that the cars will fall into.
If you are looking at getting coverage for existing vehicles, there are many tips you can use to reduce your business car insurance quotes.
Try investing in insurer-approved vehicle security devices, e.g. an immobiliser or alarm, or adopting preventative measures like parking your vehicle in a locked garage or secure business premises overnight. Factors like this will lower your car insurance quotes, so they are worth considering.
Another way of paying less is to consider what excess you are prepared to pay. If you don’t envisage many claims a year, then consider upping the percentage of any claim you agree to pay. Insurers will see you as a much lower risk – they will have to pay out less money – and reduce your premium as a result.
Don’t be afraid or too complacent to consider shopping around. You can go online and find some great deals on comparison websites.
Make no mistake by thinking your current insurer will reward you for loyalty because most insurers actually offer the lowest quotes to their new customers, so it naturally follows that if you take time to shop around, that you will be at the receiving end of the best deals online.