A basic car insurance policy covers the everyday use of a vehicle by its owner. Some examples of this include when a car is used on social occasions, to go shopping, the school run and the day to day routine of driving to and from work. However, when a car is used over a large amount of time for business purposes, a business auto insurance policy is needed. This is due to the fact that in the event of an incident, a basic insurance policy would not cover the occurrence. Extensive mileage covered for the purpose of work, the activity of constantly driving between different offices, the lending of a car to work colleagues for business purposes, and the carrying of commercial goods, are a few examples of when an automobile is in use as a work vehicle. In cases like these, it is required that the automobile is covered by a business auto insurance policy.
Business auto insurance policies are more expensive than basic auto insurance policies. This is due to the fact that drivers of vehicles for a business are more at risk than the average driver. Being on the road longer and covering more miles increase the chances of them being involved in an accident. This does not mean that a business auto insurance policy must be strikingly more expensive than a basic policy and those seeking insurance must not accept this as being the case.
The first step in not paying too much for your policy is knowing exactly what coverage you need. Knowing what your requirements are will allow you to avoid paying more for unnecessary coverage. What must also be evaded is the occurrence of you not having enough coverage either. If this was to occur and you were to claim, you would most probably be denied. So be honest about what you need and obtain a personalized policy that suits you. For example, in your circumstance, the car may be registered to you, and you use it mostly for personal obligations but you also need it to fulfill appointments with clients. If this is the case, then this is what you need to be covered for. Another circumstance is if the car is registered to the company itself, however you still use it for some personal obligations and work and other staff use the vehicle also. There are many scenarios covered by different business auto insurance policies. The trick is to find the right one to fit your circumstance.
For more information on San Francisco Business Insurance or to find the best commercial car insurance policy that best suits your needs call Sweet & Baker Insurance Brokers today at 415-512-2100.