We all know the importance of car insurance. It’s not just important to protect your car on the road but it’s also a legal mandate. While auto insurance is mandatory for every car, the importance of getting one increases exponentially when you are using it for your business.
Cars that help you run your business should be insured at any cost. After all, they are not just cars but pillars that hold your business together and lure in revenue for you. However, personal auto insurance is not applicable to cars that are used for business purposes. For this, you need commercial car insurance and that’s exactly what we are going to discuss today.
Also, if you are looking for reputed car insurance brokers in Calgary, make sure you only go for well-known providers like Surex that have a substantial number of positive reviews and ratings for their services.
7 Reasons You Should Get Commercial Car Insurance For Your Business
If you are doubtful whether buying commercial car insurance is worth it or not then we have something to help you.
Here’s a list of 7 important reasons commercial car insurance is worth the investment.
1.Personal Car Insurance Does Not Cover Commercial Cars
You might feel that if you already have personal car insurance then you do not need commercial car insurance. Well, that’s not how it works. Even if you already have auto insurance, the moment your car is being used commercially you will need to switch to commercial car insurance.
The reason behind this is that personal car insurance does not provide enough coverage for commercial cars. Also, if your insurance company discovers that you were using your car insurance on a commercial car, the policy will lapse and immediately be declared void.
2. Driving A Commercial Vehicle Involves More Risk Than A Personal Vehicle
The more time your car spends on the road, the higher its chances of getting into an accident. The same goes for your commercial vehicle.
Commercial vehicles are used to transport either goods or passengers. In both cases, they spend a substantial amount of time on the road which increases the chances of an accident or them being subject to vandalism and theft.
Sometimes, the accident is not even the driver’s fault. In these cases, commercial car insurance will prove highly beneficial for the business owner.
3. Commercial Car Insurance Provides More Benefits Than Personal Car Insurance
Since your car is being used for business purposes, it’s quite natural that it will have more needs than a personal car. The best package includes liability coverage, property damage coverage, and payment for medical bills.
Moreover, you can add benefits on top of these that will better suit and cater to your business requirements. However, you should keep in mind that such additions will elevate the premiums and the insurance will be costlier than personal car insurance.
4. Commercial Car Insurance Also Protects Your Driver, Passengers, And Third Parties
When on the road, it’s not just the car that has to be protected. Take Non-emergency medical transportation (NEMT) companies, for example – they will need to keep the driver, the passengers, as well as any third party involved protected. In case of an unfortunate accident, you will need NEMT insurance to keep your business safe. Commercial car insurance like this covers all the charges incurred whether it is for your car, your driver, or the third party involved.
If you failed to provide coverage for the third party or the driver, there are chances they can file a lawsuit against you and your business. In this case, you will be drained of way more money than what you’d have otherwise invested in your insurance premiums.
5. Commercial Car Insurance Can Help You Save On Tax
As a business owner, it is obvious that you are looking for ways to save some money on the payment of your taxes. Commercial insurance provides the perfect solution to this problem.
It not only protects your car and helps you cover property damage and bodily injuries but also provides you with immense tax benefits. This is on grounds of it being a business investment.
6. Business Vehicles Need Higher Limits Of Coverage
Business vehicles often include trucks and other similar vehicles that require higher coverage in comparison to ordinary automobiles meant for personal use. After all, the damage caused by these vehicles would be much more impactful than small family cars.
Depending on the model, replacing and repairing these vehicles can also amount to a huge sum. Personal car insurance is not enough to cover this huge bill.
On the other hand, commercial car insurance provides a higher coverage limit which is more than enough to pay for your vehicle no matter how big or costly it is.
7. It Might Be Legally Required In Your Country
Depending on the country and state you are from, having commercial insurance for business vehicles can also be a legal mandate. Even if it is not mandatory in your country or state, your vehicle might need to have commercial insurance coverage should it travel to a different state for business purposes.
This again depends on that particular state’s rules and regulations. To steer clear of these obstacles in business, it’s better to get commercial insurance for your business vehicles beforehand.
When it comes to the road and your business, you need to be prepared for the worst even if that includes losing your source of income i.e. the vehicle to an accident. But a loss does not have to severely impact you and/or your business if you prepare beforehand and get all your cars insured with commercial car insurance.
Commercial car insurance will help you focus on your business and will instill in you the confidence that even if an unfortunate accident were to happen, your business is well-protected and won’t be hampered.