Business Car Insurance
Business car insurance, also known as commercial auto insurance, is designed to provide coverage your entire workforce as well as any other business-related travel.
What Is Business Car Insurance?
Your standard car insurance policy will cover your daily commute as well as social activities. However, If you use your car for business, you will not be able to file a claim unless you have the proper insurance. That is why you require commercial auto insurance. Your car is only covered by business car insurance if you use it for work. It can safeguard you and your employee in a variety of ways, including driving to multiple work locations, visiting clients or customers, and transporting other employees.
Key Points
- Standard car insurance will not protect you if you use your car for business.
- There are 3 classes for business car insurance: Business car insurance Class 1, Business car insurance Class 2, and Business car insurance Class 3.
- Business car insurance is important if you use your car for work or business purposes.
When Do You Need Business Car Insurance?
You need business car insurance if you are using your car during work hours. Because personal auto insurance does not cover accidents that occur while you are working, even if you are driving your own car, you may need business auto insurance. If you are a small business owner and your business owns or leases any vehicles, business car insurance can help protect them. Here are some situations where business car insurance can help you:
– You use your car to drive your colleagues or clients around.
– You commute to different locations for work, such as to meet your clients.
– Your cars are owned by a partnership or corporation.
– You use your car for other work-related tasks, such as dropping a parcel at the post office or driving to training days.
Keep in mind that commercial car insurance and business car insurance are different. Commercial car insurance is designed for those who use their part as an integral part of their job, such as delivery drivers, taxi drivers, or driving instructors.
What Are the Classes of Business Car Insurance?
Depending on the amount of coverage you need, business car insurance is divided into several classes. These include:
Business car insurance class 1 – Covers your vehicle whenever you move between work locations or to see clients or customers. It’s the most expensive form of business car insurance.
Business car insurance class 2 – This class of business car insurance provides the same coverage as business car insurance class 1. However, it allows you to add a named driver such as a coworker who will also be covered to drive the same vehicle and it the most affordable car insurance.
Business car insurance class 3 – Business car insurance class 3 covers long-distance driving as part of your business use. It is the least expensive class of business car insurance. However, it might be necessary, for instance, if you are a door-to-door salesman, this class of business car insurance will be the most helpful.
You can purchase business car insurance within all the 3 car insurance classes provided in Thailand.
What Does Business Car Insurance Cover?
The coverage provided by business car insurance varies between insurers and the specific class of car insurance you purchase. However, business car insurance generally covers the following things:
- Damage
- Repairs
- Replacements
- Medical expenses
- Fire damage
- third party liability
- Theft
Have a peace of mind while driving at work with business car insurance.
Why Do You Need Business Car Insurance?
You’ll need business auto insurance because you cannot make a claim if you use your car for work and get into an accident while driving for work purposes and do not have business car insurance. Furthermore, you may be breaking the law, as standard car insurance covers you only for social, domestic, and personal purposes, such as visiting friends, going to the store, and taking a day trip. Many insurers will only automatically cover your vehicle if you drive to and from work, implying that you only use it for your daily commute.
Not having business car insurance exposes you to the following risks:
- When using your car for business, you will have little or no compensation for injuries.
- Repairs, accidents, and other costs must be paid out of your own pocket.
- You may lose your regular car insurance policy if you use your car for business purposes, but you don’t have business car insurance.
How Much Is Business Car Insurance?
In most cases, business car insurance policies are more expensive than standard car insurance policies. This is because you usually spend more time on the road, or you might be driving on unfamiliar roads if you use your car for work, which increases the risk.
There are various different factors insurers use to calculate insurance prices. These include:
- Who will be driving the car?
- When and where will the car be driving.
- What the car will be used for.
- Are you going to be driving the car long distances?