Business Auto Insurance Basics

Posted in Auto Insurance , Business Auto Insurance

August 18th, 2009

Becoming the CEO of your own company can be an exciting experience. From the first product or service sold, to your first annual salary to further developing your business to capture a larger slice of the pie, everything can feel grand. Even getting to the point of adding a company vehicle to the business can be a thrilling experience, especially if you know the basics of business auto insurance.

Business auto insurance is a must have expense for those who havecompany cars, trucks or vans and require their employees to drive them as part of their job functions. Whether these vehicles areleased, owned or rented for business purposes, business auto insurance is a mandatory expense dictated by state law to protect not only the welfare of the drivers and others on the road, but your company’s bottom line.

Business auto insurance needs to cover two types of scenarios. Collision coverage will covers the vehicle when an accident occurs. Comprehesive coverage will protect your vehicle in case of theft, hail, fire, vandalism, windstorms or flooding. How much PIP, bodily injury liability, property or uninsured or underinsured motorist coverage you may need is determined by your state and should be researched on a case by case basis.