Were you aware of how important it is to get company car insurance?
When businesses are looking into insurance options, many look past car insurance. However, this is something that you need to think about, especially if your employees will be driving for you. Company car insurance will protect your company’s vehicles and employees.
The business car insurance cost will vary depending on what type of coverage you get, but you can expect to pay more than regular car insurance. However, you won’t need to go bankrupt paying for it. It’s something that you should include in your business plan so that you can start budgeting around it.
Here’s everything you need to know about company car insurance!
What Is Company Car Insurance?
Commercial auto insurance is one of the most important things a company can get, especially if their business revolves around driving. Car insurance is essential protection for drivers in the event they get into an accident. Depending on the type of policy you have, you may be able to cover all accident-related expenses.
When it comes to getting into an accident, the driver that was responsible for the accident will be held liable. That liable driver will then be responsible for covering most or all of the expenses that the other party has. These expenses often include things like vehicle repairs and medical bills.
Aside from covering the expenses of another driver, your drivers will be covered if they’re hit by someone else. Instead of having to pay for their expenses, your insurance policy would cover them. They’d also be eligible to receive compensation from the party at-fault.
Car insurance for companies come in a variety of different plans. Insurance providers make you pay for a certain amount of coverage so that you can legally drive. However, you can choose to get more coverage if you’d like. It’s best to do this to prevent anyone from having to break the bank after an accident.
Why Your Business Needs It
If anyone in your company drives a vehicle for you, you’ll need company car insurance. Businesses need this insurance because most states require them to. It’d also be in your best interest to get it so that you don’t get sued if one of your employees gets into an accident.
Many people don’t realize that getting company car insurance will also protect company vehicles. Whenever an employee gets into an accident, your insurance provider will pay to repair or replace your vehicle, which will save you a ton of money.
It doesn’t matter which type of vehicle you have, there will be an insurance policy that covers it. However, the cost will vary depending on what type of vehicle you want to cover. Van car insurance is something you’ll need to look into if you want to use a variety of different vehicles.
The Car Accident Process
Understanding what happens after a car accident isn’t difficult. The process is similar to that of a regular car accident, the only difference is that it involves an employee that’s driving for their company. Getting a good idea of what goes on will help you realize how insurance will help you!
Here are some of the main things that happen after a car accident:
Evidence Is Gathered
The moment a car accident occurs, police will arrive at the scene to see what damages have been done. They’ll talk to both parties to figure out what happened, and they’ll start collecting evidence.
Whenever an employee gets into an accident, they’ll also need to collect evidence because you’ll need to present this to your insurance provider. Have them take photos and videos of the scene, showing the vehicles and their damages.
Insurance Providers Are Contacted
With the evidence, you must contact your insurance provider and inform them that your employee has been in an accident. They’ll request more information about it, so you’ll need to send them the evidence that your employee has gathered.
If someone hit your employee, you must also contact their insurance provider. They may try to offer your company a lump sum upfront, but you can seek more compensation through the court if you don’t feel as if it’s enough.
Both Parties Try to Resolve Things
Trying to figure out how much compensation someone deserves can be a lengthy process, especially if the other party is complacent. If they cause problems or you can’t resolve things through negotiation, you’ll need to take the case to the courtroom.
When this happens, it’s best to have a car accident attorney to guide you throughout the process. They special in accidents and know everything about car insurance for businesses, so they can ensure that your company and employees get the right compensation.
If you decide to take things to court, keep all of the evidence you’ve gathered to further prove your case. Your lawyer will also gather as much evidence as possible. Your insurance provider will work with you throughout the process, so inform them whenever you can about updates.
Get Company Car Insurance Today
After reading this article, you no longer have to ask yourself, “What is company car insurance?” We encourage anyone that owns a business to get company car insurance because it will save you a ton of money in the long run.
Keep in mind that if you require an employee to drive for you, you must get insurance to protect them. Without it, you can get sued if they get into an accident and you don’t have insurance to help.
Contact us to learn about our insurance services today!