Insuring Your Home-Based Business Car

By Insurance.com Posted : 02/05/2007

To buy commercial or personal car insurance coverage for your car: That is the question…asked by most home-based business owners when considering what kind of car insurance to purchase for their car. As luck would have it, most business owners have enough coverage under their personal auto insurance policy to protect their investment; however, that is not always the case for all home-based business owners!

“As long as you’re not driving other people around a lot of the time, you're probably fine with a personal auto insurance policy,” says Ed Charlesbois of The Travelers. “For instance, if you operate a delivery service out of your home, you're going to need a commercial car insurance policy that will cover your business assets in the event you're involved in a car accident. However, if you're a real estate broker and you drive clients around from time to time, you can get away with having just a personal auto insurance policy.”

Auto Insurance Costs For Your Home-Based Business
Home-based business owners need to pay attention to liability limits in order to protect their personal and business assets as well. That’s why your liability limits and deductibles are major factors in how much you’re going to pay for auto insurance. The higher your car insurance limits and the lower your deductible, the higher your car insurance premium rates will be. When determining your car insurance premium, auto insurance companies typically look at the number of miles you drive, who drives your vehicle, your driving record and your claims history.

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“To help minimize their financial risk, home-based business owners should consider heightening their liability limits,” noted an official from Insurance.com. “In the event of an accident, the injured party may come after you as an individual and as a business, so by having higher liability, you are saving yourself from potential headaches in the future.” Whether or not you choose commercial or personal auto insurance, your protection is the same, but the cost of commercial may be slightly higher than that of personal.

Insure What You Haul
If your business requires you to shuttle equipment from job-to-job, and you have a home-owners or renters policy, your business equipment will have minimal coverage. However, depending on the value of your equipment, your home-owners or renters policy may not be enough and you may need to take out a rider to cover your equipment.

Business Owners Policy
Business Owners Policies cover property damage and your liability risks on and off the business premises. On the average, Business Owners Policies will cover up to $10,000 to replace lost, stolen or damaged equipment, so long as it isn’t a permanently attached piece of equipment.

If you are a home-based business owner and would like to make sure you are getting the most out of your car insurance, log on to Insurance.com’s auto insurance comparison application. Here, you will be able to evaluate multiple rates from best-in-class insurance providers – helping you find the best and cheapest auto insurance coverage for your home-based business.  

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