There is a blurred line between personal and work life when it comes to small businesses and local contractors. Not only does this complicate financial issues, but it can also make auto insurance unclear. Some business owners are unsure if they should shop for personal auto insurance or add a commercial car insurance policy to their plan. Determining which one you will need comes down to the type of vehicle you are purchasing and how it will be used.
Check the Exclusions for Car Insurance
If you use your personal vehicle, even for a day a week, you may still need commercial car insurance coverage. That is because your personal auto insurance policy may not be designed for or may specifically exclude any commercial use. Also, personal auto insurance does not apply to business-owned vehicles or vehicles that are specifically designed for business use, such as a catering truck.
Tips to Shop for Commercial Insurance in Arkansas
To ensure your commercial vehicle is fully protected and to get the best possible premium, there are a few tips you will want to consider while shopping:
- Highlight Your Driving Record – When getting quotes, remember that one of the key factors in determining your commercial car insurance premium is your driving record. If you have employees that will drive a commercial vehicle, their driving history will also be taken into account. Make sure the only employees you authorize to operate company vehicles are qualified and do not have a record of traffic citations or accidents.
- Comparison Shop – Some insurance companies are business-friendly, while others charge more than necessary for commercial car insurance coverage. Do not seek out just one quote; instead, comparison shop between two to three different insurance companies to compare rates.
- Consider the Deductible – Review the deductible and see if you can raise it (within financial means) to lower your monthly premium. Remember that your deductible is your out-of-pocket expense; therefore, only raise it as high as you can afford.
- Payment Options – Commercial insurance premiums may receive a higher discount if you pay for your policy in full each year, as opposed to monthly payments.
- Bundle Up – Bundle your commercial car insurance policy with other commercial insurance policies to see if you can save even more each year. For example, pairing your general liability, workers’ compensation and car insurance could save you more than having your car insurance with a separate insurance company.
Most importantly, talk to a broker who specializes in commercial insurance in Arkansas. The Nowell Agency can perform a comprehensive risk assessment and help you find the right policies, including auto insurance, to fully protect your business.