Proper Classification of Your Business Vehicles Can Reduce Your Business Car Insurance Costs
It is very important for Texas business owners to understand car insurance from a commercial perspective. Many small business owners and artisan contractors often assume that their vehicle can be properly covered under their commercial insurance policy. This is rarely the case. Simply having a Business Car Insurance policy may not be enough. It is necessary as well for the business insurance insurer to be thoroughly informed as to the specifics of the risks the car will be exposed to, in order for the policy to both reflect the use of the vehicle and to cover it appropriately. TAHI makes it easy for the business owner to describe clearly the usage of the vehicle. We have worked with contractors from all industries over the past 25 years and are familiar with almost every business model in Texas. Getting a good, clear understanding of the way the vehicle is used and the industry it is used in helps us take advantage of classification opportunities that give the owner the very best Business Car Insurance rates and coverage.
It is never a good idea to use personal auto insurance for a business car, truck, or van. Any vehicle used in business should be registered in the name of that LLC, corporation, or partnership. Registering the vehicle and insuring it under the business name allows the carrier to properly assess the exposure the business itself is subject to when the vehicle is used. Business Car Insurance can then be written that will cover the company and the automobile against these risks. It is crucial to understand exposure and how it impacts policy coverage in general.
Many business car insurance holders assume they are covered on their policy where ever their car travels. This is not necessarily true. Most commercial autos are used in a specific manner during the course of business operations. Driving a commercial vehicle for personal reasons, or taking it to a location(s) not pertaining to the nature of the business and the vehicle's intended use, can result in liability losses of the automobile is involved in an accident. This is a tricky call to make at times, and requires the assistance of a business car insurance agent who thoroughly knows insurance laws and can weigh the vehicle's use against the coverages enumerated in the policy itself. If the policy needs amending or replacing, TAHI can do so to make certain that gaps in coverage are eliminated and liability is reduced as much as possible.
Another common coverage question we are frequently asked is the question of "Who is covered on a business car insurance policy? Can employees use their personal automobiles in my business?" The answer to this is again a variable based upon the type of business, type of license the driver holds, and the vehicle itself. It is not as cut and dry as the laws pertaining to personal auto insurance, which allows any licensed driver not excluded by name to be insured under the policy. In order to determine driver eligibility, it will probably be necessary to include "Drive Other Car" and "Employers' Non-Ownership" coverages in the policy. Call us today for free information on these options.
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