What You Need To Know About Home Based Business Auto Insurance

When purchasing home based business insurance, auto insurance should not be overlooked, nor should you assume your personal car insurance is sufficient as home based business auto insurance. Even if it is, it’s important to know how, when, and to what extent it applies to your home business.

Depending on your business activities, a commercial home based business auto insurance policy may be necessary, particularly if you have employees. For the most part, both personal and commercial car insurance are the same with regard to the main types of coverage, but finding the cheapest car insurance rates for either means pinning down your specific needs.

Personal Or Commercial Coverage?

For the home based business, home based business auto insurance may not be necessary, and a personal auto insurance policy might be sufficient. It is important, in that case, that the policyholder inform his or her auto insurance company that the personal auto is sometimes used in business, and, should the vehicle be in an accident or be damaged, it is essential that the claim state the vehicle was being used for business at that time.

The auto insurance provider may require commercial auto insurance, however, particularly if your home based business has employees that use owned or leased company vehicles or personal vehicles for business purposes.

Choose A Well Rated Vehicle To Keep Premiums Down

Car insurance for both commercial and personal vehicle use are affected by the choice of vehicle. If used more for business than for the family car, the owner of a home business should choose an auto that carries one of the cheapest car rates because, in the eyes of auto insurance companies, it is less expensive to buy or repair, is stolen less often, or has more standard safety and security equipment.

Listings of the cheapest car rates can be found at state insurance agency websites.

Auto Insurance Company Ratings

One of the best ways to find a good auto insurance company is by checking out their ratings. These ratings are a result of massive consumer surveys – people who have actually done business with several auto insurance companies are asked to rate the insurers based on certain criteria that includes customer support and ease of filing claims.

Keep in mind that these ratings are not comprehensive and are essentially just the opinions of a number of consumers who may not necessity comprise a valid representation of the whole consumer base. As in any other rating system, auto insurance company ratings have limitations, and the better you understand these limitations, the better you can use rating information to guide your decisions.

Do not be misled by high ratings, because they don’t necessarily mean that the auto insurance company’s rates are low. Keep in mind that most ratings are limited to certain sates or vicinities, and that the top scorers may not be in business in your area. The auto insurance ratings reflect average consumer perceptions of the auto insurance company and its service, not assurances of any kind. Be open to the possibility that while other people may have had good experience dealing with a particular auto insurance company, you may experience something different.

Ratings can be unreliable, especially if they are based on haphazard surveys that do not verify respondent ownership of the product or services being surveyed. For example, some rating companies may ask random consumers for their opinions regarding a certain auto insurance provider without making sure that the respondent actually uses that insurer. Non-scientific ratings are misleading, so be careful how you use the information they give you. Do not base your decisions on ratings alone – it is important to also do some research yourself.

Auto Insurance Quotes – Things to Know Prior to Requesting Free Online Car Insurance Quotes

It’s great that you’re utilizing the internet to get online insurance quotes on your auto insurance in California as most insurance companies these days will display their rates right online for you making it quick and easy to find the best fit for you. The internet is definitely the easiest, fastest, and best way to obtain competitive quotes on auto insurance. There are some things that you should know before you start shopping online for your car insurance quotes in CA.

1. Understand where you’re putting your information. Some online companies offering insurance quotes are only a lead generation service. They do not sell insurance; they collect your information and sell it to companies who can sell you insurance. On average, they will sell your information to about 5 companies who will contact you to offer their rates. Your rates will not be displayed online but having multiple companies quoting you does have its benefits

2. Do your best to enter correct information to get accurate rates. Companies will quote your auto insurance based on the information you provide but when issuing a policy they will then underwrite the policy and make necessary adjustments. The reason you want to try to be as accurate as possible is because insurance company “A” could have given you the best car insurance quote from the 3 companies you called but you forgot about a ticket you had last year. Now, with the ticket rated with all 3 companies, insurance company “A” could be the most expensive of the 3. Another reason is that some insurance companies will actually sell you a policy based on what you’ve stated and then pop you with a bill and additional premium once they have underwritten the policy. So know your main rating factors and be as accurate as possible to help you find the lowest auto insurance rates.

3. Know your coverage options and what coverages you need. When you’re shopping online auto insurance quotes there is no one to advise you on what coverage are or what is probably best for you. You get what you click on and you could end up under or over insuring yourself. If you’re unsure about the coverages and need advise, you can always call us whether you’re insured with us or not and we’ll be happy to answer any questions you may have. You can also read our main coverage options and explanation of coverages article.

Risk Selection and Usage Based Auto Insurance

Auto insurance risk selection is how insurance agencies determine whether or not to insure a person or what insurance premium to charge that person. The jurisdiction that the vehicle is being insured in may or may not affect the insurance premium because of a government mandate or a specific framework created by the insurance company to fit the regulations set by the government. The insurer looks at the vehicle, the driver and the coverage.

The type of vehicle is looked at by the insurer to help determine the auto insurance premium: the age since production, the manufacturer, the model and the value of the car is taken into account. An older car might negatively affect the premium, but an older car of a trusted model and manufacturer might balance the premium out. The value of the car positively affects the premium in that the more valuable it is, the higher the premium will be.

Safety equipment like airbags and anti-lock brakes can provide a discount on the premium. Passive threat control devices such as The Club and car alarms could reduce the auto insurance premium as well.

The type of driver will affect the auto insurance premium in these ways: age, gender, marital status, driving record, violations, at fault accidents and place of residence. In Canada, those over 25 have a discount on premiums because they are an older driver. Previous driver training also provides a discount, and being female and married help for a greater auto insurance discount, too. The more violations, at fault accidents and a not so clean driving record will negatively affect the premium. A clean record of driving will provide a discount. Surcharges will apply if the vehicle is used for business purposes.

The most recently applied idea in auto insurance, even if it is an old idea, lets the characteristics of each driver set the premium on a monthly basis. The insured car is monitored electronically by the insurance company in order to gauge the auto insurance by month for a driver. For example, if a driver were to drive short distances at fast speeds, the premium might be higher as the insurance company assigned the driver to a higher risk class for that month. This is called usage based insurance and is currently offered in Germany, some states in the U.S., South Africa and Japan.

Some drawbacks to usage based insurance is that the customers’ privacy may be infringed because of the continuous use of GPS to track and monitor the vehicle and that prepaid insurance charges for future rather than past risk. A distance-based system might not easily distinguish between highway and suburb driving, and the amount of speed used may make the premium higher even if the insured drives safer than a slower driver.