Among the two car insurances, business car insurance and personal car insurance, there are some acute differences among them. It is in fact, a coverage we need in our daily lives. Although they have some similarities, they also have many aspects that are different.
If you are not looking to increase your rates, you will first need to get the driving record of any applicant that applies to your business. This protects you as the owner. You do not want to hire someone for the position only to find out their driving record is less than perfect. In fact, you might not be able to add them on to your policy at all. Then, this employee you hired only becomes a drain on production. Unlike personal car insurance policies where you are only responsible for your household; business policies are more risk and the employees do not always have your best interest in their thoughts.
The flexibility of the business policy far outweighs the personal car insurance policy. This is because you have different circumstances that arise in business. A business usually deals with expensive items and carries certain items. During this time, they are responsible for it. If something happens, they have to pay up. This is business activity and not personal. A business policy is necessary.
Lines can often times become blurred when deciding whether or not you have used your car more for business or for personal use when the same car is being used. To avoid this confusion, it is advised that you use a logger for miles and gas. This will help differentiate which miles were used where.
As always, a separate business policy is always recommended over a joint policy. There are many liabilities that come with business and to place your personal use in the middle is not often a good idea. If you are going to proceed using a personal policy for limited business use, you will need to contact the company you are insured with immediately and let them know. This will help prevent any claims being turned down in the event that something happens and you are using it for business use.
Realtors, Regional Directors and salesman all fall into the classification of often forgetting to note they use their car for business use. This is because some people have a road block do to the fact they do it every day. Any time a person drives to a meeting, property or a house or business for a potential sale, they are using their car for purposes that constitute business. This is the type that needs to be noted under a personal policy.
Never be challenged later down the road with not having adequate coverage or being denied a claim because you did not inform the insurance company of your situation. Talk to an agent and get the best deal.
Graham McKenzie is the content syndication coordinator for Carinsurancesa.co.za. South Arica?s leading Car Insurance portal, which provides cover for all Car Insurance types.
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