The Ultimate Guide to the Different Types of Auto Insurance
If you want auto insurance, but aren’t sure what kind of coverage best suits your needs, then this guide to the different types of auto insurance will surely help you out. Click here to get started.
In the United States, owning a personal car is more necessity than luxury. This explains why a whopping 95 percent of American households own at least one vehicle.
For all the joys, convenience and comfort that comes with owning a car, there are a number of responsibilities. For instance, you have a duty to ensure your vehicle is properly and adequately insured. In fact, save for a few states, it’s a legal offense to drive around in an uninsured car.
But did you know the kind of car insurance that’s right for you and your car? This is particularly important if you use your car for business activities.
If you don’t, lean in. This is a complete guide to the different types of auto insurance your business may need.
But first off;
What Is Business Car Insurance?
Some car owners don’t know the difference between the regular/standard car insurance and business car insurance, especially if they also own a business or are employees.
If you use your personal vehicle for business activities, such as driving to see a client or dropping a package, and your car is only insured for personal use, you’re committing an offense. Not only that, but you’re also risking voiding your insurance policy.
If you’re involved in an accident, your insurance company will certainly reject your compensation claims, because you were using a personal car for commercial activities.
To avoid such problems, get business car insurance, in addition to your standard car insurance.
In detail, here are the types of car insurance you need.
1. Liability Insurance
If you own a car, you probably already have liability insurance.
This type of insurance policy will protect you from any liability in the event that you cause an accident and harm other people or destroy property.
For instance, let’s say you’re dashing to meet an important business client. In the hurry, you ram into another car, which spins off the road and breaks into a roadside shop. Your liability insurance will pay for the medical costs of the people in the car you hit, as well as for the repairs the shop owner will need to carry out.
However, liability insurance doesn’t pray for your own costs, and neither does it pay for your car repair. This takes us to the next type of car insurance policy.
2. Personal Injury Protection Insurance
Every year, about 1.25 million people in the United States sustain car accident injuries.
Life after an accident can be very challenging. Depending on the nature of your injuries, you might not be able to go back to work immediately. Some injuries can permanently disable and force you to abandon work completely. Healthcare costs can also run into six figures.
Without the right type of insurance, you’ll be forced to dig into your pockets and take care of your expenses. It’s no wonder healthcare is the number #1 reason Americans file for bankruptcy.
Personal injury protection is the type of auto insurance that will pay for these costs. It will also pay for the healthcare costs of passengers you were carrying in your car at the time of the accident. The policy also covers lost income and funeral expenses.
3. Collision Insurance
Collisions are a constant worry among business owners. When your cars or trucks are out on the road, a collision can mean the vehicle sustains extensive damage.
With only liability insurance and person injury protection, your vehicle is left exposed. This is where collision insurance coverage comes in handy. Your insurer will repair your car if it collides with another vehicle, or hits objects such as trees and buildings. When the vehicle is damaged beyond repair, the insurer will replace it.
4. Comprehensive Auto Insurance
In 2016, more than 700,000 vehicles were stolen. Although this is a significant reduction from the record 1,661,738 vehicles stolen in 1991, our cars are not any safer. With car thieves getting more sophisticated, they can easily steal any of your cars if they want!
So, what happens when your car is stolen by an employee and the police can’t trace it? None of the insurance policies described above will compensate you.
Or, what if it’s swept away by floods? Or it’s consumed by a volcanic activity? However unlikely it seems, natural disasters can destroy your cars, and if you hadn’t purchased the right insurance, the loss will be yours to bear.
Fortunately, that’s why there is comprehensive auto insurance. It carries one of the priciest premiums, and compensates for your loss when your vehicle is stolen or damaged by a natural disaster. Comprehensive policies also cover collisions and other accidents.
5. Roadside Assistance Coverage
Ever run out of gas in the middle of nowhere?
When it’s a personal car, you don’t have much to lose. But when it’s a business vehicle, running out of gas or breaking down could mean delayed deliveries, missed client meetings and the like.
It can put your brand on the line.
Roadside assistance coverage will take care of such troubles for you. When your car breaks down, all you have to do is call your insurance provider and let them know. They’ll arrange for the appropriate assistance.
In most instances, this insurance coverage is offered as part of another policy, rather than a standalone policy. Many insurance providers, such as this company, offer you the option to customize your auto insurance policy.
Get Your Car Adequately Insured
When you run a business, vehicles are a must-have. But then you must ensure they’re insured, otherwise you’ll be held liable and incur unnecessary losses.
In this article, we’ve shared with you the various types of auto insurance. Your task now is to identify the ones you need and proceed to purchase them.
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