What you need to know about business auto insurance
Do you use a car for business purposes? In that case, ordinary car insurance is often not enough. Consider situations where you use your car for:
- Customer visits
- Freight transport
- Transporting personnel
With business auto insurance, you are covered for risks specific to business use. The difference with private car insurance is in the coverage. With business use, the costs in the event of an accident are often higher. And insurers anticipate this. This way you avoid unexpected surprises and can hit the road with peace of mind.
Who is business auto insurance for?
Business car insurance is not just for large companies with fleets of cars. It can also benefit self-employed individuals or small business owners who regularly use their car for business. Suppose you use your private car to visit customers or deliver things? Then this is not covered by ordinary insurance. The same goes for freelancers to drive to assignments. Insurers often have specific requirements for who qualifies for business car insurance, such as a minimum number of business miles per year. So check carefully whether your situation falls under this before making your choice.
What is covered by business auto insurance?
The coverage of a business car insurance depends on the package you choose: third-party, limited casco or full casco (all-risk). WA is mandatory and covers damage to others, while limited casco also provides coverage for theft and storm damage, for example. If you go for all-risk, then damage to your own car is also covered, even if it is your own fault. With business insurance, you can often choose additional options. You can think of:
- Coverage for cargo
- Legal Aid
- Replacement transportation
This makes it a flexible solution that you can adapt to your specific business needs.
Getting business auto insurance
Getting business auto insurance is not very complicated. However, there are always a few things to watch out for. For example, insurers want to know how much you use the car for business, what kind of work you do and who drives the car. Do multiple employees use the car? If so, that should be clearly stated in the policy. It’s also smart to compare well between insurers, as premiums and conditions can vary considerably. Look not only at the price, but also at what exactly is covered. That way you won’t encounter any nasty surprises.
Tax advantages of business car insurance
One of the nice things about business auto insurance is that you can often deduct it as a business expense. This means that the cost of your premium, and in some cases your deductible, are tax deductible. That can save you quite a bit on an annual basis. In addition, you can often reclaim VAT on repairs and maintenance, which is an added benefit. Just make sure you keep your records neatly, because the tax authorities obviously want proof of business use. And this allows you to move quickly when this becomes necessary.
Pay attention to the fine print
When choosing a business auto insurance policy, it is important to look not only at the big picture, but also at the details. For example, what about damage caused by employees? Are there security requirements, such as an alarm? And what if you also use the car privately? Some insurers offer combined coverage for this, but you often have to specify this explicitly. Take the time to read the terms and conditions carefully and ask for advice when in doubt. It’s a bit of a chore, but it prevents hassle afterwards.