Commercial Auto Insurance for the Home Based Business Owner

When you own your own business and operate it from your home, it can be easy for the lines between businesses and personal to cross and to confuse how you handle certain aspects of your operation. And with all the different IRS guidelines and home business ordinances, it is definitely easy to become confused about what is business-related within your humble abode and what is personal.

Personal Auto Insurance: The Basics

Personal auto insurance is not so much a product chosen based on the ownership of the vehicle in question as it is a product chosen based on the use of the vehicle being covered. When you talk about personal auto insurance, you are talking about a policy that covers the expenses and liabilities that arise from an accident that occurs when a vehicle is being operated for personal purposes. This could mean that it was going to or from the grocery store, dance recitals, the library and all manner of personal errands.

Personal coverage includes all the basic options you are used to, like collision, bodily injury liability, personal property liability, comprehensive and more. When you have personal auto insurance, you may be asked to provide information about where you work, what you do for a living, and how often you drive each week, but your home business has no bearing on your rates other than it may reduce some of your risk since you drive less and, therefore, create a lower premium for you.

Where Commercial Auto Insurance Fits

We now know that personal auto insurance refers not to the ownership of the vehicle, but to the usage of the vehicle. As a home based business owner, you may be more likely to use your vehicle for business purposes than an employee at a regular 9 to 5. Why? Well, unless you order all your office supplies online and have them delivered, you almost definitely use your vehicle for business purposes. In addition, if you need to pick up a client or client property, pick up stock, shop for items to resell, travel to meetings or drive to a coffee shop to work for the day, your travel may be considered business-related in the insurance company’s eyes.

No matter how small the errand is or how little time it takes you to run each week, if you use your vehicle for any business purpose, and an accident occurs while you are out, your insurance company may deny the claim if you have nothing more than personal auto insurance. From their point of view, you have asked them to insure your vehicle based on a certain kind of usage-personal. Adding in business usage changes the insurance contract because it takes away their ability to accurately assess your risk based on your actual exposure.

Commercial auto insurance offers many of the same coverage options as personal insurance, but it is appropriate for the commercial or business use of your vehicle. There are even some ways to design a policy so that it can cover multiple drivers and multiple purposes, so you can get personal and commercial coverage that is adequate for your actual usage, all in one policy.

Like personal insurance, commercial auto insurance offers you the opportunity to choose deductibles and limits that create premiums you can afford. Be sure to watch your deductibles-these must be paid out for every accident and can become financially burdensome if they are too high. Additionally, low limits may create inexpensive premiums but they also expose you to much more financial risk than you may be reasonable able to take on.

If you are a home based business owner, it’s a good idea to take an objective look at your driving habits. When you do, you might be surprised at first how often you utilize your personal vehicle for business errands. But being surprised before you have an accident is a good thing, because it gives you the time you need to get the right insurance coverage to protect your business, your family, and your financial future.

Auto Insurance Information – Discover the Right Coverage For Your Car

We have learnt the fact that every automobile must be insured. However, do we really know why? The answer to this question will help us in searching for the right coverage for our vehicle.

Given below is some information about different types of insurance cover available to customers. There is a lot of choice in the auto insurance market. Different plans are available for different persons with different financial capabilities. High auto cover sounds like a good thing but is not very affordable. Very few can purchase a quality car and opt for very high coverage over and above it. So what should all others do?

Your Budget Matters

You should always choose your auto insurance based on your budget. Then, you should opt for the one that offers maximum coverage within your budget. Your coverage should include liability coverage. If you meet with an accident due to your fault, you may have to pay for the damage incurred to the car as well as to other persons.

Your Liability Cover

If you have this cover, your legal costs are also taken care of. In a world where lawsuits are filed at the drop of a hat, this cover is very useful. Your liability cover takes care of your liability to others while collision cover covers the damage suffered by your car.

If you want to protect your car from all possible causes of damage, then you should opt for comprehensive coverage. This will secure you against damage or loss due to theft, vandalism, arson and even natural disasters. If you have purchased your car using finance, you cannot afford to ignore this cover.

Personal Injury Protection and Uninsured Motorist Cover

Once you have considered and decided upon these basic coverage options, you can check out other coverage options like personal injury protection and uninsured motorist cover. The former pays for medical expenses irrespective of which party is at fault. The latter provides compensation if the other driver is the person at fault and does not have any insurance protection. This ensures that your finances are not at the mercy of whether the other drive opts for insurance or not.

Is your car very essential for your daily routine? Then opt for rental reimbursement coverage as well which will pay for the rental car you get when your automobile is not capable of being used.

Should You Use a Broker to Get an Auto Insurance Quote?

Just how important is it to use an auto insurance broker? Early this year, an auto insurer based in Chicago was fined $256,000 by the Missouri Department of Insurance. The company, called Universal Casualty, was found guilty of underpaying claims. Policy holders also complained about the way the claims were handled. Imagine how much trouble you’d have on your hands right now if this company had been your insurer? What auto insurance brokers do is save you from hassles much like this one. Not only do they find you the best rates, they also make sure you deal only with reputable companies.

If you haven’t taken time to get a new quote on your car insurance in the last year or so, chances are that you are paying than you need to for your coverage. The fact is that insurers are constantly revising their pricing and terms to remain competitive with other insurers, but this doesn’t always trickle down to your own policy. So sometimes you really do have to bounce around to various insurers with your coverage to save money. The last thing you want is to find you are paying more than you need to for your coverage, and so you should take time today to get an auto insurance quote.

Many people, however, don’t have the time required to shop around and get an auto insurance quote. After all, you will actually want to get several quotes, and this means either going to various websites to get those bids or calling around to different companies. It truly can take you several hours of work to get the bids you want, and few people really have that kind of time to commit. Yet you want to save money on your coverage, so what can you do? There are some really great insurance brokers out there who specialize in getting you the quotes you want quickly and with ease on your part.

If you don’t have time to spend getting an auto insurance quote, or if you have time but don’t want to bother with the hassle, you should contact a broker. You just have to give the required information to this one person a single time, and they will in turn take your information and shop around for you. You may think this will be a costly service, but actually the insurance companies pay them so you don’t have to come up with a dime for this service. The broker will provide you with several different quotes, and it is up to you to choose which one you want to move forward with. Plus, if you have any questions about coverages, your broker is the perfect person to answer those questions.

It really isn’t any fun to get an auto insurance quote, and it can take up a lot of your valuable time, too. Thankfully, an auto insurance broker can help you make it easier than ever to save money by changing policies. There’s no better time than the present to get started shopping around!

How Not to Choose Auto Insurance

There are plenty of articles out there telling you what to do when purchasing auto insurance in Missouri. However, what you should NOT do is just as important. Read below to learn a few things you should avoid when purchasing an auto insurance policy.

1. Don’t buy a policy just because it’s the cheapest option. Consider the customer service, claims payments, and financial security of the company you are considering. It’s great to save money on your auto insurance but it doesn’t do you a great deal of good if the company does not pay your claim or is impossible to get in touch with.

2. Don’t choose your auto insurance based upon the flashiest or most memorable television ads. There are many options for purchasing auto insurance in Missouri and you should never purchase coverage without doing thorough research. One great way to receive multiple auto insurance quotes without spending a great deal of time is by using an independent insurance broker.

3. Don’t cancel your current policy before your new policy is in effect. There are many reasons why an insurance quote may go up after the agent has provided you with the information. For instance, perhaps there’s a ticket or accident you did not tell your agent about or perhaps the insurance company has run a credit check which returns negative information. Whatever the reason, you want to make sure that your new coverage is acceptable before canceling your current coverage.

4. Don’t purchase a policy if you don’t understand exactly what you are purchasing. While your insurance agent should know a great deal about insurance you should never assume that he or she knows everything. You must always act as your own advocate when it comes to such matters.

5. Don’t choose an insurance company merely because they are “well-known”. There are hundreds of independent agents throughout the state who are able to help you purchase auto insurance in Missouri. This is not to imply that a large company may not be your best bet, but like all consumer products you should always shop around before purchasing.

These are just a few of the many tips you should consider when purchasing your next insurance policy. Just remember to take your time, do your research, and ask questions if you do not understand something.