Company car insurance is a policy that is available for businesses that run company cars. Getting the right coverage is the first step in the process of protecting your assets and your health. The policy is cheaper and easier for many cars than arranging person policy for each car. It is also available for buses and coaches, taxis, van, commercial vehicles and motorcycle couriers.
There are certain facts that are available and worth noting. Before entering into a contract with any insurance company, it is a general requirement to research on the background and reputation of the various companies offering company car insurance. A company's repute is dependent on the number of years it has been in the insurance business as well as the number of successful claims it has offered. Some insurance companies are known to deny customers rightful claims.
For a vehicle to qualify for company car insurance, there are three requirements which must be fulfilled. The first and fore most is that the car must be registered since it is illegal to drive a vehicle missing registration. Secondly, the insured vehicle should be road worth and thirdly, road tax on any insured vehicle must be up to date. Proof of payment must be produced before the insurance company.
To qualify for the company insurance cars' policy, one is required to have a minimum of four cars. The cars however need not to be the same. One can have two Lorries, two buses and one salon car.
The driver must have a minimum age requirement of twenty five years. Driving conviction claim history of the driver must be declared. Less experienced young drivers have a higher company insurance car cover than their counterparts who are old and more experienced. On gender, men have a higher insurance rate than women.
In liability, the company insurance car policy covers death related claims or injury to third party personal. It also includes compensation for any damage to another person’s property which occurs as a result of the accident. A comprehensive policy on the other hand pays for damages sustained as a result vandalism, theft, water, fire, and more. You may not need a comprehensive cover if you bought your car in cash or have paid off your car loan.
This is the amount of money one pays out of pocket before the insurer pays when involved in an accident. It is part of the comapny insurance car policy and is normally quoted as a fixed quantity. The higher the deductible amount, the lower the premium and vice-versa.
While looking for a company insurance car, there are important factors considered in determining the underwriting risk on the vehicle is the retail cost and performance capability of the vehicle. On retail price, the more the cheaper the car, the cheaper it is to insure it and the vice versa is also true. Also, a sport car is more expensive to insure than a sedan. On performance, high performance cars carry higher premiums since there is a greater risk opportunity for risky driving behavior.
It is very important to make sure you carefully read the company insurance car policy wording of any policy before purchasing to ensure that you have the right cover. This will also help you to know what you are buying and hence entering the contract in your right mind.
Make sure that you receive all the paperwork as it is essential to display the insurance in a place where it is visible. It is also useful if any officials ask to see your company insurance car documents.
- Keep all the paperwork.
- Read the policy before purchasing any policy relating to company car insurance covers.
- For company insurance cars, get a it is preferable to get a policy that caters for all liability and comprehensive so that it covers for most of the unexpected eventualities.
Sources and Citations
- Benjamin Graham: Intelligent Investor July 1, 2003
- John C. Bogle: The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns, March 5, 2007
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