Auto insurance can be a maze to figure out in itself; throw a home based business into the mix and it can get really confusing. However, it doesn’t have to be difficult and it is a necessity when you are using your vehicle for business purposes. Having commercial car insurance is beneficial to have but can be expensive if you don’t comparison shop for the best deal.
You will first need to define for yourself and the insurance company you choose what type of small home-based business you have. This matters because of the amount of driving you will be doing and for what purposes. For instance, if you have a towing company, your rates will be different than if you have a transcription service and make occasional pick-ups or deliveries.
Be clear about your business and what your insurance needs are. Have your business name and license in order before you shop for your commercial car insurance.
One thing to think about when you are deciding on an insurance company for your home-based business is how to qualify for a multiple policy discount. When you need business insurance as well as commercial car insurance, its best to go with the same insurance company. This will save you money and make it less complicated if you ever have to file a claim.
Another way to lower the expense of insuring a business use car is to pay the insurance policy all at once. Making a single payment instead of monthly payments can save your business up to ten percent, according to www.autos.com.
When you are looking to cover your home-based business vehicle the expense may seem overwhelming. Another way to lower the cost is to pay for a higher deductible. Increasing the deductible will lower the expense of the monthly payments. Before making the decision to go with a higher deductible, make sure you can actually afford to pay the deductible if the occasion ever arises.
If your small home-based business has been in operation for more than a year, preferably three or more years, you may qualify for another discount. This will depend on the individual insurance company and the type of business you have been doing. They will also require proof of prior coverage and your business license.
A simple discount to remember is to make your monthly payments by automatic deduction. This is simply allowing the insurance company to take the monthly payment straight from your bank account instead of sending in a check each month.
To make the best choice for you and your business don’t be afraid to ask questions and shop around for the best possible deal. According to www.autos.com, the top three best insurance companies for overall customer satisfaction are Automobile Club Group, Allstate, and GEICO.