Insuring Your Company Vehicle:

If your business requires the use of a company vehicle, your existing personal automobile insurance coverage may not be enough to protect you in the event of an accident. Many personal policies limit the activity of the vehicle and may not provide you with the coverage you need for a company vehicle.

Purchasing a commercial automobile insurance policy is highly recommended if you do have a company vehicle. There are many benefits to these policies, including the ability to deduct your insurance premiums from your taxes in most cases.

If you have several company vehicles, the need for a single policy is even greater. In addition to simplifying the billing process, a large policy can provide more comprehensive coverage. You will have three options for your commercial vehicles.

1. Insure the vehicles that are owned by your company. In this case, the titles for these vehicles would normally need to be in your company name as opposed to being registered personally. If you have only one vehicle, this is generally the best option for you.

2. Insuring all vehicles that are operated, leased or hired by your business. This type of insurance works well for companies that have more varied automobile needs and can provide a higher level of coverage.

3. Insuring all vehicles, irregardless of company ownership. In this last type of policy, you would be purchasing coverage for all the vehicles that your company uses, even if they are not owned, hired or leased. This works well if your employees use their own vehicles during the course of their duties.

There are several different types of commercial coverage for automobiles. Most policies offer general coverage, with the ability to add-on other necessary options. These options may be important to your business, particularly in specific industries. Let's take a look at your different options.

1. Comprehensive Coverage. You may be familiar with this option from your personal policy. Generally, it is very important to have this type of coverage, unless your vehicles are quite old or you cannot afford to purchase complete coverage. Comprehensive coverage provides coverage for all losses, even if they are not the result of an accident.

2. Named Peril. If you cannot afford comprehensive coverage, this is an excellent alternative. You will be able to select specific losses, such as fire or theft. The term named peril refers to the fact that in order for coverage to occur, the damage or loss of the vehicle has occur due to one of the named perils.

3. Collision Coverage. This type of coverage will cover damage to your company vehicle that is the result of an accident.

If your company vehicles are stored in an outdoor location, or frequently exposed to danger, a comprehensive policy would most likely provide the amount of coverage that you would need. If you have only one vehicle, collision coverage should suffice. You will need to look at your various options and your risks before making your final decision. Commercial coverage, although more expensive, can save you and your company a great deal of money over time.

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